Money Talk: The 10 Best Things You Can Say to Your Children about Money
Many parents do not know how, do not want to, or lack the communication skills necessary to talk to their children about money in general. So when a money crisis develops, the potential to pass fearful and negative attitudes towards money to the next generation increases.How effective are you at talking about money? What words do you use when you talk about money in front of or directly to your children? Below you will find a list of the ten best things you can say to your children about money. Use it to gauge your money talk skill level.
1. "It's allowance time. Everybody get your envelopes!" One of the main reasons for having allowances is to teach children about budgeting. The envelope system will help you do that. Children are concrete thinkers. That means if it is not in their hands, it is not in their minds. Envelopes will help you make the teaching of budgeting a concrete process. Label envelopes with several budget areas, including savings, investment, charity, and spending. Children can divide their own allowance by placing the amount of money they choose in the appropriate envelopes.
2. "I'm willing to pay part of it." This phrase is useful when your child wants something that exceeds the budgeted amount you had earmarked in your budget. If you had $80 set aside for sneakers and they want a pair that costs over $100, this sentence defines your limit. It also invites the child to take responsibility for coming up with the difference. It curbs feelings of entitlement and allows children to take ownership for achieving their desires. In addition, if some of their money is invested in the article, they are more likely to take care of it.
3. "Did you bring any of your money?" This money talk question is helpful for those situations where children ask impulsively for things while you are shopping. It helps them to see that they need to have forethought in the money purchases they make.