When To Introduce Kids To Money

    Published: 06-16-2009
    Views: 13,919
    Financial planning professional and member of the Financial Planning Association®, Marguerita Cheng, CFP®, CRPC, discusses how to begin a dialogue with your children about money, and provides some tips on how to keep the conversation going.

    Marquerita Cheng: I am Marquerita Cheng, and I am a member of the Financial Planning Association. Today we will discuss How and When to talk to your children about money. When should you start? Many Financial Planning Experts such as those from the Financial Planning Association, say you should start talking to your kids about money as soon as they can say "I want.

    " Show Preschoolers how money works using simple concrete examples like Trading At any age take opportunities to model how you make money decisions as you shop, pay bills, go to the bank, cook and so on. How can you talk to your kids about money when you haven't done a very good job of managing it? Even if you don't say a word, your children will watch how you handle money and learn from it. You are a role model, but you don't have to be a perfect one. Think about the money behaviors you are demonstrating in front of your kids and try to make them as positive as possible. For example, you might say, our family plans for the future, so we don't spend everything we earn. Talk to your children about what you do well with money. Mistakes you've made and how you can improve. Share with them your emotions and values related to money. One way to get in money conversation going with the whole family is to write off financial mission statements together, outlining your family's values and priorities when it comes to money. Invite your kids to brainstorm answers to questions such as, what's most important about our family? What do your think our goal should be? What can each of us do to get the money we need to reach our goals? What should we do differently with our family money? What should our family do to do to help our community? These are just a couple of ways that you can talk with your children about finances.