Teaching Kids About Money: 3 Tales Told by My Children
As a parent, it’s my job to teach my children about money. I can’t just tell them that we need to spend less and save more, because they’re still going to want designer clothes and video games. So how do we talk about finances with our kids without scaring them away? I’ve come up with three tales told by my children that have made me think about how we should approach this important topic, Here is our guide on Teaching Kids About Money: 3 Tales Told by My Children:
(1) “Mommy, how much money do you have?”
My son was a very young child when we first started teaching him about money. But it wasn’t long before he asked me about our bank account balance. We had just moved into a new house, and it came with a mortgage payment (the first time we’d ever had one).
I explained that there were two ways of looking at this amount: “The bank” or “you and me.” The latter is what I would call our net worth—everything we own minus what we owe. And when my son asked if he could see his own balance at any point in time, I took him through the process of checking out different accounts online and then writing down each transaction as it happened.
This way, he could see how much money was left over each month after bills were paid or spent on things such as clothes or toys for him to play with at home or school activities like sports teams where dues are required by age membership requirements set forth by governing bodies within their respective states/provinces/cities across Canada which have laws governing youth participation rights within these organizations. So students don’t feel pressured into joining up without considering whether they really want these responsibilities!
This is a common refrain from your kids, whether they’re old enough to understand the concept or not. It’s a great way to teach them about responsibility, saving for the future and giving back. And it’s fun—once you get them focused on the subject matter (and by “it,” I mean money), they’ll be hooked!
(3) “How did you buy this house? With your MONEY?”
When I was a kid, it wasn’t difficult to teach kids about money. They weren’t really interested in saving it or investing it—they just wanted to buy something.
Nowadays, you have to do more than that if your child is going to understand how the world works and become an adult who makes good financial decisions for themselves and their families.
I decided I would start by telling my son about how we bought our house with cash from selling some other property we owned (which had appreciated significantly since our purchase). He asked me why we didn’t use a mortgage when purchasing our first home instead of taking out all that cash? My reply was simple: “Because we saved up enough money beforehand.”
We all can do better for our kids when it comes to finances.
It’s a lifelong process, and one that will be worth your time.
- Teach your kids to save, not spend: When I was growing up in the 90s, my parents taught me how to budget my money. Start by saving for things like a car or vacation. As an adult now with three kids of my own—and another on the way. I’ve learned how important it is for them to start learning how to save from an early age. So they have something saved up when they’re older.
- Teach your kids about investing: Investing doesn’t just mean buying stocks. It’s also about building an emergency fund. So when life throws you curveballs (like unexpected expenses), there’s no need for panic! The best thing is if you can help teach them while they’re still young because they’ll remember this lesson forever!
My kids are full of questions about money. They want to know how much I make, how much we spend on groceries and gas, and how we save for vacations. I’m glad that they’re interested in these topics because it helps me with my own finances! Hopefully, the 3 stories above will give you some ideas on how to start talking about money with your kids too.