Talking about money is still a taboo subject in many households. This perhaps stems from a host of sociological and psychological origins, but whatever the specific reason may be, finances do matter a great deal, and having to find this out on your own can leave you unprepared for some harsh truths. If you want to help your kids learn about finances, then it is likely time to relinquish the awkward feelings surrounding money talk (if you have any) and offer them guidance.
Learn Together
There are many great resources online, like guides, videos, and expert blogs that can explain finances to you in plain English.
Getting submerged in the jargon of the financial world is possibly what makes people so hesitant to try and actively learn more.
Cutting through this jargon and learning to talk about finance in a straightforward manner can help you learn together as parent and child, a great way to support each other throughout your educational journey.
This may be particularly valuable when the time comes to learn about the nature of credit and interest, as this can tend to be a fairly intricate topic at times. You may want to check out a great guide on what is a good APR for a credit card for an example of what kind of info to watch out for.
It may sound like you would be jumping too far ahead to talk about credit, but learning about what makes a good credit rating is extremely important, as it can help your family member to avoid picking up some bad habits early on.
Forget About Financial Embarrassment
Parents find it hard to talk to their kids about money for a number of reasons, one of which might be embarrassment or shame surrounding their own wages.
This archaic and stifling mythos needs to be dismantled if a sensible conversation about finance is to take place.
Opting instead for an open dialogue in which you are willing to answer your child’s questions and encourage their curiosity might be the best way forward.
Start with the Basics
Without a strong foundation of financial knowledge to build upon, making money mistakes seems somewhat inevitable.
Starting by teaching your kids the basics, i.e., the value of saving and budgeting can be done relatively early. Plus, you can make it fun, all you need is a piggybank and a dime or two.
Failing to learn some of the fundamentals might even lead to financial isolation in the future, a dreadful feeling that can perpetuate in the mind.
Set a Good Example
Understanding the value of a present or a piece of candy can be difficult for younger kids, as they do not tend to have a comprehensive frame of reference to consult.
By setting a good example and practicing good personal spending habits, while explaining the value of a commodity (loosely speaking), you can start to help your kids learn about finances in a way that prepares them for when they start to get hold of their own money as they grow older.
The finance talk can be a tough one, but an exceptionally important one nonetheless.
