Kids are never too young to learn the skills of saving, budgeting and other basics for
becoming a money-wise person.
T. Rowe Price's 2014 Parents, Kids & Money survey found that 60% of kids whose
parents frequently talked to them about budgeting feel they are smart about money,
as opposed to jsut 34% of kides whose parents do not.
There is a clear corrleation between talking with kids about financial topics and their
habits. Parents can invest in their kids by talking to them weekly about money matters.
The survey also found that parent s are having more financial conversations with boys
rather than with girls. Boys and girls should have the same opportunities to learn about
money matters at home so they can grow into financially savvy adults. By talking to
kids of either gender about things like saving for college, parents can help kids get
involved and excited about their future.
TIPS FOR STARTING MONEY CONVERSATIONS WITH YOUR KIDS
1) Learn to engage in frequent money conversations with your kids. Sit down to
discuss in a casual dialog for maximum effectiveness. Take trips to the bank or
the grocery store or other real world situations where you can teach you kids
about spending, savings and money concepts. Be thorough and specific. Stress
the concept of saving for something in the future.
2) When discussing weekend plans: Ask your kids how much will the activities cost.
Ask them to put together a monthly table of the spending habit along with their
cashflow from all sources.
3) When talking to your kids about their future: Ask your child what they wish to
be when they grow up. This is a great opportunity to talk about what kind of
college degree may be required for the profession, how much getting the degree
can cost and the need to save for it in advance.
4) When talking about extra activities like soccer, dance, karate, piano lessons and
others, talk with your kids about the cost of each. Help them understand that all
of these actiivities add up to a lot of money so they can help you save by only
doing the ones that they really enjoy.
Using these simple tips to help integrate mney conversations into your daily lives
and your kids will thank you for it later.
