Children And Money
Talking to children about money is something that most parents don’t consider important. Many parents believe that teaching children about money begins and ends with schools teaching them to add, subtract, count money and make change. However, with statistics showing that 25% of college students drop out of school due to the mismanagement of money, teaching children how to control their finances is as important as helping them learn to read. Both are invaluable skills. Regardless of the income level, parents should begin to teach children about money at a young age.
Before beginning the dialogue with children about money, parents should answer a few questions regarding their beliefs about money and its use. Danes and Dunrud suggest that parents ask themselves the following questions:
How will we create an open environment in which our family can discuss money issues?
How should our children receive money? Will we give them allowances or use another method?
What are our family values and attitudes about money that our children may be observing?
What do we communicate about money?
How will we structure learning experiences about money?
How will we respond to the effects of advertising and peer pressure on our children’s buying requests?
Children need to know about earning, spending, borrowing and saving money. They will observe your habits and typically follow your lead. If you haven’t mastered these concepts, they probably won’t master them either. However, even if you aren’t good with money, chances are that you know how to be. Therefore, talking to children about the importance of earning, spending and saving is very important.
There are concepts that you can leave strictly for schools to teach your child. However, managing money shouldn’t be one of them.