As a result of being a guest expert on Experian's #CreditChat panel once again, I thought this discussions's topic was one you all would relate to. Each panelist was asked to offer our thoughts on "Why it is important to talk to your children about money". Here are my responses to the questions posed to us in an easy to read format.
You may be waiting until your child is in their teen years to begin teaching them about finances. But, there is no need to wait! It's so important to teach your children as it gives them a good foundation when it comes to money. You should begin as soon as they are able to remember and regurgitate things like songs and conversations. You can successfully do this through money games, books, having them make cash payments at the store, and counting the change to ensure it’s correct. Here is a great coloring book for younger kids. For teenagers, you can use Vol 1 of the It'$ My Money journal book.
You may be asking what concepts should be discussed with your child at a young age. In my opinion, the fundamentals like savings, budgeting, needs, wants, goals, and investing are important to teach. The best way to do this is by showing vs telling! Depending on their age, bring them to the bank to make deposits and use technology to show them the transactions. Concepts like credit can be taught at a later age, preferably their high school years.
A large part of teaching finances to your child is to help them prevent mistakes. But even if they do occur, it should always be used as a learning opportunity. Never make your child feel bad about it, instead find which lessons they can learn from the mistake. Remember to be great examples to your children, manage your funds well and share as appropriate with your kids.Her are downloadable resources that can help you.
Also help your children to understand needs vs wants and make money an inviting topic. As a reminder some great resources are:
There are also resources for parents that can help you manage money so that the conversations and interactions with your children about money are a bit smoother.
A couple other resources that are available are the:
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