Talking to Kids About Money

A recent survey conducted by Americans for Consumer Education and Competition found that only 35% of the students surveyed have regular family discussions about money. Start talking about money! Parents and adults should pay attention to being a good role model for kids, but it is very important for kids and adults to actually talk about monetary habits and attitudes.

Here are some ways adults can be actively involved with money discussions with kids:

• Encourage kids to ask questions.
• Ask kids questions about money and find out what they know and what they want to learn more about.
• Answer questions about money honestly.
• Use simple examples to explain complex concepts.
• Get the kids involved in creating a master plan of family finances.
• Allow kids to make some of their own financial decisions.
• Teach kids how to apportion their money between savings/investments, everyday living expenses, and charitable giving.

Here are some ways kids can be actively involved with money discussions with adults:

• Ask questions.
• Let adults know what is understood and what is not understood about money.
• Discuss ideas on how to earn money.
• Tell adults what is interesting about money.
• Ask about how to invest and save.
• Talk about ways to spend money wisely.
• Ask about giving money to charities.
• Discuss personal goals.

Raising Money-Smart Kids

Kids learn about saving and spending money from a variety of sources. Not surprisingly, the most common source of influence and information are the adults raising the kids. Only about one-third of children have regular family discussions about money. Start talking about money! Parents and adults should pay attention and be good role models for kids, but it is also very important for kids and adults to actually talk about monetary habits and attitudes.

Encourage kids to ask questions. Ask kids questions about money and find out what they know and what they want to learn more about. Answer questions about money honestly. Use simple examples to explain complex concepts. Get the kids involved in creating a master plan of family finances. Allow kids to make some of their own financial decisions. Teach kids how to apportion their money between savings and investments, everyday living expenses, and charitable giving.