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Teaching Money Matters: How Parents Can Talk About Money with Kids

November 16th, 2024 Posted in kids and money, learning about money
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Talking about money with kids can feel daunting, but it’s an essential life skill that sets them up for financial success. Early conversations about saving, spending, and budgeting can build your child’s confidence and help them develop healthy money habits. Here’s a guide to starting meaningful money talks with your children.

Teaching Money Matters: How Parents Can Talk About Money with Kids

Photo by Diwei Zhu on Unsplash

Why Discussing Money Matters with Kids is Important

In many households, money is a taboo topic, but avoiding it can leave children unprepared for the real world. By introducing age-appropriate conversations about finances, you empower your kids to:

  • Understand the value of money.
  • Differentiate between wants and needs.
  • Make informed spending decisions.
  • Appreciate the importance of saving.

These lessons can shape their attitudes and behaviours, fostering financial responsibility from an early age.

Age-Appropriate Money Conversations

For Younger Children (Ages 3-7):

  • Introduce Coins and Notes: Let them handle physical money to understand its different denominations.
  • Play Money Games: Games like shopkeeper or using pretend cash registers can make learning fun.
  • Simple Savings Jar: Teach them to save for something they want by using a clear jar. Seeing money grow can be incredibly motivating.

For Tweens (Ages 8-12):

  • Allowances with Responsibility: If you give pocket money, encourage them to budget it between saving, spending, and giving.
  • Set Goals: Help them save for bigger items by breaking it into smaller, manageable goals.
  • Talk About Earning: Share how adults earn money by working and explain the concept of value exchange.

For Teens (Ages 13-18):

  • Banking Basics: Open a savings account for them and teach them how to manage it.
  • Budgeting Skills: Show them how to create a simple budget for their needs, wants, and savings.
  • Discuss Credit: Explain the importance of responsible borrowing and the potential pitfalls of debt.

Practical Tips for Parents

  1. Lead by Example: Children learn by watching, so demonstrate good financial habits. Show how you budget, save, and make purchasing decisions.
  2. Answer Questions Honestly: Be transparent about money. If they ask questions, provide truthful but age-appropriate answers.
  3. Use Real-Life Scenarios: A trip to the supermarket is a perfect opportunity to discuss price comparisons, discounts, and value for money.
  4. Introduce Financial Stories: Books and stories can make complex topics relatable. The Financial Fairy Tales series is an excellent resource to spark curiosity and teach essential lessons in a fun, engaging way.

Bring Money Lessons to Life with Stories

If you’re looking for creative ways to teach kids about money, the Financial Fairy Tales books are a fantastic option. Packed with inspiring stories, these books weave financial education into magical adventures, helping children grasp the basics of earning, saving, and making wise financial choices.

Check out the Financial Fairy Tales series on Amazon to start your child’s journey toward financial literacy.

Final Thoughts

Talking about money with kids doesn’t have to be complicated or intimidating. By starting early and using everyday opportunities to teach, you equip your children with the tools they need to manage money wisely throughout their lives. Remember, the lessons you share today will shape their financial confidence for tomorrow.

What are your favourite ways to talk about money with your kids? Share your tips in the comments below!

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10 Reasons Why You Should Talk To Kids About Money

June 18th, 2022 Posted in kids and money, teaching children about money
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Being a parent, you want what is best for your children. This includes teaching them about money. It is important to have conversations with your kids about money so that they can understand its value. Here are ten reasons why you should talk to kids about money:

10 Reasons Why You Should Talk To Kids About Money - piggy bank and coins image
Photo by Andre Taissin on Unsplash

1. Money is a part of everyday life

Your kids see you using money every day, whether it’s to buy groceries or pay the bills. By talking to them about money, they’ll better understand its purpose and how it works.

2. It helps them develop healthy spending habits

If you teach your kids about money early on, they’re more likely to develop good spending habits. This includes learning how to save up for things they want, be mindful of their spending, and resist impulsive purchases.

3. It teaches them the value of hard work

When you talk to your kids about money, you can also teach them the importance of hard work. Explain how you earn money by doing your job and emphasize that they can do the same when they’re older. This will instill a strong work ethic in them from a young age.

4. They need to understand financial responsibility

It’s important for kids to understand that money needs to be handled responsibly. Teach them about budgeting, setting aside money for savings, and why it’s important not to spend more than they have.

5. It helps them avoid debt

If your kids understand how money works and the importance of financial responsibility, they’re less likely to fall into debt as adults. This is a valuable lesson that will help them throughout their lives.

6. They learn about different types of investments

When you talk to your kids about money, you can also teach them about different types of investments. Explain how some people invest in stocks, bonds, and mutual funds to grow their money. 

7. They become more financially independent

The more you talk to your kids about money, the more financially independent they’ll become. They’ll learn how to save and manage their money, so they won’t have to rely on you as much when they’re older.

8. It builds their self-confidence

As your kids learn more about money, their self-confidence will grow. They’ll feel empowered knowing that they can make sound financial decisions and achieve their financial goals.

9. They’re less likely to make financial mistakes

If your kids are well-informed about money, they’re less likely to make financial mistakes. This includes overspending, falling into debt, or making poor investment choices. By talking to them about money, you can help them avoid these mistakes.

10. It’s never too early to start

It’s never too early to start talking to your kids about money. It is also important in the unfortunate event of going through a divorce, that you have an understanding with the other parent about exposing the kids to this topic. Your divorce lawyer will guide you here. The sooner you have these conversations, the better equipped they’ll be to manage their finances as they get older.

The Bottom Line

By talking to your kids about money, you’re helping them develop important life skills that will benefit them now and in the future. So don’t hesitate to have these conversations with your children – they’ll be thankful that you did.

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How to Get Your Child to Learn More About Real Estate

March 14th, 2022 Posted in kids and money, learning about money, Property Investment
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Teaching can be fairly easy when it comes to your first few years as a parent. You’re taking care of your little one, you’re letting them develop their own interests, and on top of that you’re teaching them the basic things such as ABC and counting to ten. While the theory of teaching and taking care of children sound simple, in practice, it can be quite challenging of course. But as your child navigates through life, they’ll learn more about how to survive once they reach adulthood so they can thrive.  While school can teach plenty of life lessons to your children, one thing they don’t teach is real estate.

Real estate and real estate investing are important. It needs to be known and understood so adults can purchase their first house. But property value isn’t the only thing either, interest, mortgage, banks, savings, and overall financial health also play a major impact in this as well. These are things that aren’t exactly covered in school, quite possibly in college as well.  So, how can you teach this to your little one? How can you get them to understand the importance of financial health and the impact of real estate? These helpful tips may be all you need to get started on this journey.

How to Get Your Child to Learn More About Real Estate - model red house and key image
Photo by Tierra Mallorca on Unsplash

Why is it so important to teach children about real estate?

Many people think that it is not a good idea to teach their kids about real estate because they want them to have a carefree childhood. While that’s understandable, a child has to learn so they can make smart decisions once they reach adulthood. Besides, there are many benefits to learning about real estate at a young age. Children who are taught about real estate at an early age are more likely to purchase their first home before the age of 30.

Start by teaching them the value of a dollar

Children believe that money is an infinite source, that there doesn’t need to be any work, trade, or anything in order to receive it. It’s natural for kids, especially small kids to have their train of thought. So, what can be done? First, begin by teaching them that money is a scarce resource and it’s not something that their parents can pull out of thin air.  You just need to find an age-appropriate way to get them to understand, and one of the classic ways is through chores.  Getting them to understand money at a young age is going to ensure financial wellbeing.

Letting them work for the money will also let them know that there needs to be some sort of trade to get money. It also teaches them that if they want something, they will need to work for it, and it also teaches them that the things they have, are thanks to their parents working for it.  It takes a little while to teach, but kids will eventually get the understanding.

Let them play video games

While real estate is something that can be difficult to grasp for someone at any age, the sooner, the better. So teaching it to them at a young age will be optimal. If you love video games, then this could be a great and engaging way to have some fun with your child while also teaching them about real estate.  There are plenty of video games that are out that do teach basic economics, financial health, and real estate. You, of course, will want to choose a game that can nicely reflect on your child’s age.

While The Sims franchise can be a great option if you have a tween to teenager, for the younger kids you could opt-in to playing Animal Crossing or Harvest Moon. This family fun bonding time can be one of the best ways to get your kid interested in real estate.

Get them involved

If you’re a property owner, why not talk about your property with your little one? You can explain the ways that you’re working towards raising the value of the property (such as home renovations or curb appeal), but if you have multiple properties, you can get them involved in that as well.  This can include letting them look at a lodger agreement template for your tenants, but you can even teach them the odds and ends of how you invest.

 Children are visual learners, so getting them to learn all about this up-close and personal can be a great way to get them to understand all about it. So just bring them along when you’re working on boosting property value, managing money for your real estate, and when you’re hunting for real estate to buy. It can be a great educational experience for them. 

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How To Secure a Financial Future For Your Children

October 31st, 2019 Posted in kids and money, teaching children about money
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There are many ways that we can ensure that the future of our children is bright. We can teach them right from wrong, push them to pursue their passions and wants in life, and also make sure that they’ve got everything that they need to be the best version of themselves. While reaching these goals can take various forms, there’s one thing that can help more than most: securing their financial future. A solid financial footing in the world is one of the best gifts that a parent can give their child. But how do you do this? We take a look at a few tried and tested methods below.

How To Secure a Financial Future For Your Children - image of kids working

Get Wise 

Children pick up so much more from their parents than they (the parents) think that they do. You might tell your kids not to get angry and shouty, but if you’re an angry and shouty person, then the chances are that they will be too. The same can be applied to issues related to money, too. If you’re good at managing your money, then you’ll be setting a good example for your kids. So if you want your children to handle their money wisely, then first take a look at your own money habits. This will also prevent you from making the types of financial mistakes that can cause problems and derail your family’s future. 

Put Money Away

We know, we know: times can be tough, and it can sometimes feel like there’s just not as much money in the bank account as you’d like. It really is worthwhile finding some extra money to put away in a savings account for your children, however. Life is becoming increasingly harder for young people, and a lump sum of cash can really go a long way. If you start putting a little away each month now, then you’ll have a large amount to give them when they’re a young adult. They will be able to use this money to support themselves during an internship or take a trip, or whatever else they need to become the best version of themselves. 

Teaching Habits

You can’t expect schools to teach your children everything. You will need to fill in the blanks that the schools miss out. While the education system should educate children about financial matters, they don’t. Money is one of those things that, for various reasons, just isn’t discussed all that much in England, and this is a shame because we could probably prevent many people from making financial mistakes if we did. So talk to your kids about money. You don’t need to go into the ins and outs of your finances (unless you want to); it’s just about giving the basics of money management before they’re out there in the world on their own. 

One way to do this is to give them pocket money. They’ll have a certain amount of cash to last them the week or month, and once it has gone, it has gone. They’ll quickly learn the value in holding back on spending their cash on useless junk. They should also know about the help that is available to help them maximise their financial situation. This could involve teaching them about things like probate solicitors or personal injury attorneys, both of which are there to represent the person’s interests. The more they understand about the financial world and how it works, the more they’ll be protected from it. 

Securing the Future

You’re the one that’s in charge of your children’s financial future. And if everything stays as it currently is, then there might be no problem whatsoever. But where is written that everything will stay the same? Things are always in flux. As such, it’s important that you think about what they would do should something happen to you — this, of course, is not nice to think about it, but can push you to think about getting your affairs in order. You’ll also want to take a look at your insurance policies to ensure that it covers serious injury. If you’re unable to work, then the financial future of your children will look a lot less bright. Additionally, you’ll find that there’s a lot of value in setting up a pot of cash that’s to be used as a safety net. 

Conclusion

It really is worthwhile taking the time to make sure your children’s financial future is bright. It’ll give them a boost in a hyper competitive world, in which money and resources is king. 

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How To Teach Your Children To Be Money-Conscious

October 28th, 2019 Posted in kids and money, learning about money, teaching children about money
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You want your children to have the best qualities of you and your partner. Something that might be important to you as money. Now money should never be the thing that controls your life, but it will certainly help define what you do in it. So with that in mind, here are a few tips to teach your children in being more money-conscious.

How To Teach Your Children To Be Money-Conscious - bank notes fanned image
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Show Them How To Budget

Children are never going to learn how to handle money, and many parents won’t even teach them until they’ve started earning money themselves. It’s also not something that many of us would learn about at school, particularly as it’s not always likely to be something within the school curriculum. Leading by example is important, and so it matters that you are budgeting your household income in order to show them when they are at an age to learn. It’s never too early to teach them about money. Earning pocket money for doing errands around the home is going to help them being grateful but to also know that hard work can be rewarding. 

It might be a good idea to let them see the family finances and that way, they can have an understanding of what they may need to know about going forward. Giving them an insight into a typical budget plan can be very helpful for their own in the future.

Warn Them About Loans And Borrowing Money

When you find something that might come at the right time for you or your household when they need it. However, they need to remember and be wary of having loans and borrowing money in general. If they become too complacent with knowing that money is effectively free and available to borrow, that could be quite dangerous for those who enjoy spending their money a little too frivolously. So warn them about taking them out and that they should be used in emergency situations too. You as a parent are likely to want to know about financial situations that they’re in when they are young, so always tell them to approach you first for help. It’s better for your child to pay you back, rather than to a bank or loan shark

Encourage Them To Get A Job

When they’re of an age at which they could work, you should be encouraging them to do so. Being able to get a job will help them see and learn the value of money and what it does in their own life. Having savings is important and having a job can help them put some money into their account so that they are well provided for later on in life when they need it. It also helps them to live their lives to the fullest and to show them how money can influence the type of lifestyle that they may want in the future.

Teaching your children these important life lessons is very beneficial to give them the best start in life.

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