Talking to Kids About Money doesn’t have to be hard

Recently, I saw an Instagram Reel posted by creator Derek Lipp. A home security video captured his son asking his dad for $20, and his dad wouldn’t give him the $20. His son then goes to Alexa, the at-home assistant, and asks how much his dad’s net worth is. I thought it was so funny. Alexa reported his net worth is allegedly $5 million. The son was shocked and didn’t understand why his dad couldn’t give him a few dollars from his multi-million dollar fortune. (It appears that Derek was shocked at this news, too – so don’t believe everything on the internet, lol.)

How does one teach kids about money when society encourages them to buy the next big thing? This topic shouldn’t be generalized. It depends on the child and the parent/caregiver. Does your child respond well to chores? What are their relationships with aunts, uncles, grandparents, and friends? Does the idea of work excite them? Are rewards something they respond well to? Do they appreciate experiences over things? No one child is the same.

Keep the lines of communication open. Instead of saying no, explain why this option is not a good option right now (not every time, but when an explanation is warranted). Reinforce the child to use their own money to purchase things. I am reading a book called Captivate Your Kids: Teaching Teens Financial Independence – a couple over the weekend recommended it. It offers incredible insights; their kids are in their 30s and pretty good with money.

Learning from the school of hard knocks is also a good thing. Sometimes, people will learn a lesson once they experience it for themselves. Life and being on your own is a great teacher.

It’s vital to know that the conversation is ongoing. To this day, I talk to my parents and family members about money. What are their opinions of this stock? What should I do about a particular rental property? The conversation continues into adulthood. As an adult, it’s critical to make the topic of money a safe place for a child to be open, transparent, and honest. Share money mistakes, offer advice, and connect them with experts who can equip them for success. The goal is to keep talking about money. The more you continue the conversation, the more individuals will glean and learn.

I hope this blog shared something helpful to you!