My parents helped me learn about money and budgeting. My husband's parents not so much. So that made me realize that it's important that our kids learn earlier rather than later.
Beth Kobliner, the New York Times bestselling author of 'Make Your Kid a Money Genius (Even If You're Not)' has some tips.
- Start talking about money early on.
- Show them how money works and teach them the difference between wants and needs.
- Explain to your kids what you do to make money.
- Take them to set up a bank account and explain how banking works.
- Teach them how to wait, which will teach them how to save.
- Don't use money as the reason why you won't buy them something.
- Review the pros and cons of allowances and do what feels right to you.
- But no matter what, don't tie their allowance to chores.
- Encourage them get a job early, explaining that the money they make is theirs to use how they want.
- When they get their first paycheck, take the time to explain how taxes work and why putting money in a savings account is smart.
- If college is part of the plan, start college financial talks as early as eighth grade.
- Do your best to keep money from being associated with guilt or stress — and be open with your kids about your financial situation (to a degree).
- But keep in mind there are a few boundaries that shouldn't be crossed. Although you should be open with your finances and financial health, there are some things you don’t need to share with your kids. For example, "your salary, who makes more (you or your spouse), how much you have stashed for retirement, and even how much money you spent on a gift or babysitter."
- Involve your kids when you purchase big-ticket items.
- Finally, don't let their gender get in the way of how you talk about money.