Sharing Money Wisdom With Your Children

You are your child’s first teacher. As a parent, you are teaching your children about money, whether intentionally or not.  Many parents are not comfortable with teaching their children about money.   The best method to share your money wisdom with your children is through open communication and positive role modeling.  You will not get it right 100% of the time, but know that your children are watching you.  Do you remember the show, “Kids Say the Darndest Things”?   We can learn from them.  Check out the video below.

Source: www.moneymanagement.com

Forbes magazine highlighted the top 10 money mistakes  we pass on to our kids.  The number one mistake is to “Say Nothing”.  Your silence is speaking louder than you may think.  Take the time to have money conversations with your children.  Make them natural, fun, and conversational.     Let’s educate the next generation.

Samirian Hill, The MoneyWise Teacher, is the Founder and President of BudgetWise Financial Solutions where they teach people to manage money wisely.  She is a freelance writer, blogger and fiancial educator. In her spare time, she enjoys golfing, cooking, and reading.

 

2 comments to Sharing Money Wisdom With Your Children

  • Good morning.
    One of the ways my wife and I presented our family to the children was as a small business. Either of us would alternate as CEO and Chair of Neely-Neely and Progeny. The children were stockholders who had input. Voting was based on income. We started this practice when the children were 7,9 and 13, (before the fourth child joined us). These meetings were held quarterly until they went off to college. Meetings could be called as necessary.
    We laid out our budget with income as the first entry. They saw our pay stubs showing taxes, SS, etc. We explained the difference between Gross and Net pay and what our hourly pay was based on a 40 hour week. No over time pay in our circumstance.

    We rated and ranked expenses (with their “input”). Periodic shopping trips would single out the cost of individual items,in the context of our established budged based on income and our value system. Periodic review of receipts were reflective.
    The biggest shock for them was the amortized mortgage schedule. They found it hard to believe.
    Other elements included: defining the square footage of the house and how much each room cost per s.f. based on our income; pro-rated schedule for utilities; etc.
    We addressed savings: 1)Retirement; 2) funded depreciation; 3) contingency.
    Since they went to private school, we gave the monthly check to each one on a rotating basis and asked them to take it to the business office, get the receipt and bring it back.
    I’ve shared with approach with parents, young people and some congregations. They find it refreshing, while having bursts of laughter.
    The most challenging aspect of these meetings was the annual discussion of the will, POA and Advanced Directive.
    These are a few of the ways Edwina and I talked to and taught our children basics about money.
    Bill Neely

  • Thank you Mr. Neely for your reply! This is far more comprehensive than anything I have ever witnessed. Excellent and congratulations! I am sure that you and your wife raised bright shinning stars. SH