How to Talk with Your Kids About Money

The last three weeks have been a challenge in the Foreman house. We have had our girls home with us and have been doing virtual learning. So, with that in mind, I thought it might be fun as an element of learning for the girls to join us today on the Thrive For[e]ward podcast and talk about money.

 

LISTEN as I turn over the mic to them. They had some great questions about my job, what I do, what is money and what does money mean to them. I know that teaching kids to handle and understand money at a young age can create positive habits and relationships with money. The hope is that these can better adult decisions.

 

According to Insider research shows that most habits around money are set by age 9, so it’s key to start teaching early. Children first learn by observation and then create habits. These habits are carried into adulthood.

 

Some of my tips that can help create healthy money habits include: 

  1. Talk about money as a family, openly and often

    Children are impacted by a parent’s financial decisions whether or not you choose to include them in the conversation, stresses Hemphill. If you’re transparent about your money choices instead of leaving kids in the dark, you’re setting them up better for success by helping them understand the power money can hold and providing opportunities to learn from your mistakes together. (Source: MPR News)

     

  2. Give an allowance

    Allowing your child to handle sums of money is a perfect opportunity for learning. What should they save, spend, invest and give are all great lessons.

    Think of allowance not in the terms of everyday chores that will be life skills your child would learn. Instead look at them as things that will help them grow. My kids and I talk about this in the episode so tune in to hear my whole outlook.

     

  3. Build and desire to save

    When they spend their money, have them understand what a need is, want and wish. Ultimately this will lead them to save and be thoughtful about their spending from an early age

     

  4. Engage and activate

    With kids, a hands-on approach is beneficial. Think about the ways to engage them in the store, how to compare costs for goods. Get creative and have fun with the process.

     

As we know, money touches all aspects of our lives. We cannot keep it in a closet and shield our children from it. It’s better that we talk, educate, and involve them from an earlier age.

When my youngest daughter asked me what my favorite part of my job is… it was easy for me to answer.

 Helping people.

 

I am honored and privileged that I get to help my clients through life transitions. Some are good, some are bad but ultimately the work I do is rewarding.

 

RESOURCES from today’s topic: 

 

YOU ARE WORTHY OF WEALTH and if you are interested in learning more about Forethought Planning and how we can help you on your journey, please schedule an appointment to our complimentary 30 min Wealth Assessment session to learn more about how we incorporate these strategies and others to assist you through the financial planning process. 

Securities offered through LPL Financial, a member of FINRA/SIPC. Advisory services offered through Advisors’ Pride, a SEC registered investment advisor. LPL Financial, Advisors’ Pride, Forethought Planning and the guests of Thrive For[e]ward podcast are separate and unaffiliated parties. Any of the parties listed above are not affiliated with Forethought Planning, Advisor’s Pride, or LPL Financial. The views expressed here are those of the participants, and not those of Forethought Planning, Advisor’s Pride, or LPL financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. LPL Financial and Forethought Planning do not offer legal services.

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