Why Money Conversations with Kids Matter
I’m not one to hold back on talking about my unhealthy relationship with money. Growing up, money was something there was never enough of, therefore, causing a lot of pain and despair. Those struggles didn’t seem wounding until I began noticing my money issues as a young adult and mom.
As a mom to a 7-year-old girl, I’m now conscious of how critical it is to start a healthy relationship with money from a young age. If you’re the parent of young children and are debating whether you should have money conversations with them, you should.
Below are three major reasons why money conversations with kids matter.
It helps develop a healthy relationship with it
Avoiding conflicts or issues doesn’t miraculously make them go away. To become comfortable with our insecurities, we must face them head-on. Talking to your kids about money early on can help their relationship with it in the long run.
A simple way of having these money conversations is by including them in financial conversations and decision making. If you’re on the fence about investing in new kitchen counters or remodeling the bathroom, include the entire family in the conversation. This will introduce them to basic home financing.
It introduces the idea of values
One of the most common ways we express our values is through our spending habits. By starting money conversations with your kids at an early age, you allow them to express what they value most. This is also a great opportunity to explain all the different funnels money can fall into.
Whether it’s spending, saving, or donating, your child will be able to understand how money makes an impact on their lives and the lives of others.
It teaches work ethic and responsibilities
Avoiding money conversations never made anyone more comfortable with the idea. By introducing money principles early on in your child’s life, they’ll be able to understand the hard work and responsibility it requires to make and spend money.
An easy way to introduce your child to basic money literacy is through allowances. By doing chores and earning their pay, your child will be able to connect the dots between work ethic and money. A valuable life skill that can make a big impact through their adulthood.