We need to talk to kids about money, not avoid it.
Discussing money with children is a topic many parents avoid, but it’s crucial for their development.
Studio 5 Parenting Contributor Heather Johnson emphasized the importance of these conversations and offered strategies to make them effective.
Why Talk About Money?
Money is an integral part of daily life and a common source of contention in households. Heather explained, “It’s going to be a part of their everyday life… We do our children a disservice when we avoid this topic altogether.”
Common Pitfalls in Teaching Kids About Money
Parents often fall short in several areas:
- Providing Everything: Giving kids everything without effort can hinder their understanding of value.
- Reactive vs. Proactive: Avoiding money discussions due to discomfort or fatigue can be detrimental.
- Negative Phrases: Statements like “Money doesn’t grow on trees” or “Do you know how hard I worked for that?” can create a negative perception of money.
Five Strategies for Effective Money Conversations
- Redefine Money
Teach kids that money is neutral and a byproduct of creating value. Heather suggested, “The goal should be how can you create value in this world, not how can you make more money.”
- Focus on Legacy
Encourage children to build a legacy based on values and principles. Share stories of ancestors to instill these values. “We want to actually fill our kids with stories of people who came before them and the value that those people created.”
- No More Allowances
Instead of regular allowances for chores they should already be doing, create opportunities for kids to earn money through additional tasks. “Anytime we offer up money repeatedly… we actually teach them to want to work less.” Heather suggested asking your kids how much they think it’s worth to clean out the attic or spray down the garage.
- Be Careful with Gifts
Give gifts that help launch children into independence, “not that put them on cruise control,” Heather said. Gifts should be things that help children move forward in life, such as contributing towards a new home, a car, or extracurricular activities like sports. These gifts should support their growth and development. Over-gifting can lead to children becoming less motivated to work and create value.
- Include Them in Experiences
Involve children in financial decisions and experiences. Explain the value you create through work. “We want to instead say, ‘Hey, I’m going to work today, and here’s how I’m going to provide value.'”
To contact Heather for counseling, email blog.familyvolley@gmail.com, or visit www.familyvolley.blogspot.com.
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