Communication is key because it opens locks! Locks are those tiny (or sometimes large) things only meant to keep gates, vaults, and baggage secure. It is not meant to keep valuable info tucked away when it comes to talking money management with your kids! So, start the ‘finance talk’ early – it will do your kids and you a world of good!
Times have changed. We know, we know, we all miss the ‘good old days’ too – the music, the easier financial responsibilities, the games we played and just the carefree feeling that came with simpler times (something we appreciate more today than we did back then). But, hey, the present is a gift that we’ve all been given, that’s why it’s called the ‘present’, get it? Today, we have so much going for us – the access to knowledge, the majesty of technology, the awareness of pressing societal issues (a lot of which just slid by before), and so much more.
Today, we’re talking finances; how it was handled over the years versus how we’re handling now. We’ll start with the joint family. Being a wolf-pack kind of unit, the joint family was strong! Here, the head of the household always decided the budget and how much money should be spent for the month/year. Saving, budgeting, and planning was usually left to the elders.
Now let’s fast forward to recent times where nuclear families are more popular. These families usually sort out finances between earning members of the family or the adults in the family. Here, the upper middle class or middle-class families rarely talk money with the children of the household, unless it is to say ‘yes’ or ‘no’ to money requests.
Next, the rich families. The rich families manage money differently than the rest. They often put their children aboard the splurge train, which is wrong in no way, but can be detrimental if not handled with a balance of values and good habits around money management.
Finally, poorer families with limited finances. These families often get their children to help with family expenses in whatever way possible. Here, the children are exposed to money and money woes at very young ages. They even understand their need to contribute financially! Seldom are they given lessons on spending, managing, or saving money.
Additional Reading: Financial Planning Tips While Raising A Family
Now that we have brought in that flow of thought, let’s see what we can do in our own families to inculcate strong, foundational money habits! Great pointers ahead!
- Show them the way: It is of utmost importance to practise solid life skills for your children to see! They are little sponges after all, always watching and learning! Talk about money with them, show them examples of handling money or give them small assignments to do on money management – they will retain the information so much better. The need for doing so is a necessity in today’s world with the access to devices, technology, and the internet. By showing them the way, they have more clarity about any path they choose in the future.
- Have money conversations regularly: For your pre-teen kids, talk about Credit Cards, how Home Loans work, what taxes are etc. We don’t mean that you should punish them with heavy information when they rather be out playing with their friends, we’re saying make these conversations fun! You can talk about it on a car ride, make up a game for it or even discuss it during family dinners!
- Find areas to talk about: Break down your budget and find areas that are okay to talk about with your kids. You’re probably not going to let your kids decide how much money you put into your retirement savings or investments. But you can let them help craft your weekly grocery budget or assist in choosing your next vacation destination. Other budget categories where it may be appropriate to involve your kids include entertainment, dining out, travel, clothing, birthdays and Christmas spending, and streaming services.
- Help them visualise: We know that adults keep all their financial reminders on apps or excel sheets. But why not start a fun sheet for the kids? Something you can hang up on your refrigerator, perhaps? Maybe you can set a small money goal for them to teach them about saving up for the toy they want…or maybe you ask them to save up half the amount which you can match once they reach their goal? Once they reach their goal and get the toy, which they helped pay for, it can give them a sense of accomplishment which will in turn help them take care of their things better! Bonus point: they will also see why adults keep using the phrase, ‘hard-earned money’!
- Teach them the joy of giving: While you’re focussed on teaching them financial lessons for life and adulthood, don’t forget to teach them how to also be a humane little person. Talk about setting up a small amount to give to a person or family in need. They can even decide the person, family or cause they want to give to! This can not only help you raise a wise adult and but also a kind one!
Additional Reading: Pro Tips: How To Secure Your Child’s Future
It is up to us to shape and mould our kids to take on the world! School can handle the Pythagoras Theorem, the Law of Gravity and whatnot; the rest, of course, is up to us. To start the best financial journey for yourself (and later pass on to your kids), BankBazaar is your go-to platform. You can find the best deals on Credit Cards, Personal Loans and Home Loans! You can also find interesting reads on finance along with so much more! Check it out by clicking the button below and we’ll see you around soon!
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