Money was a topic that my dad made sure we talked about when I was a child. I learned a lot from him, and while he is no long here, I believe a lot of my good money habits came from him.
However, not everyone gets talked to about money.
According to T. Rowe Price's Parents, Kids & Money survey, they found that amount parents of 8-14 year olds:
- 38% of millennial parents said they are extremely/very reluctant to discuss money with their kids compared to 16% of gen X parents and 7% of baby boomer parents. And, 63% of millennials say they sometimes avoid discussing money with their kids compared to 39% of gen X and 28% of baby boomer parents.
- 55% of millennial parents sometimes lie to their kids about money compared to 32% of gen X and 15% of baby boomers parents.
- 44% of millennial parents are counting on their kids to help them pay for their retirement compared to 15% of gen X and 4% of baby boomers parents.
- 60% of millennial parents say that when it comes to talking about finances, it’s more of a “do as I say, not as I do” dynamic with their kids compared to 39% of gen X parents who said the same and 30% of baby boomer parents.
These are some shocking stats!
I thought it would be a little different, so I am very surprised by the money statistics above. I assumed that millennials would talk to their children about money now due to how I believe that money talks are less “taboo” than they used to be. However, that doesn't seem to be the case!
I believe this needs to be changed. Every child needs to be talked to about money so that they are prepared for the real world when the time comes.
Here are my tips to teach your children about money.
Have regular money discussions.
As parents, you should have regular money discussions with your children. This is important so that they don't go their whole entire childhood without really ever understanding what money is and how it can be better used.
Topics you may want to discuss include budgeting, making money, taxes, interest, inflation, retirement, and more.
You could even teach them as you're going along in life. For example, include them in your monthly or weekly family budget meetings, so that they can see how budgets work in real life. Some parents even share their account statements with their kids.
Have websites help you out.
There are websites out there that can help you teach your kids more about money.
I recommend checking out MoneyConfidentKids.com, which provides free online games for kids, as well as tips for parents to discuss financial concepts with their children. This website can help with goal setting, spending versus saving, and more.
This can be a great way to teach your children about money due to how interactive it is. Plus, it is well-rounded, so you know that many important money-related topics are discussed.
Open an account for your child.
Opening a savings or investment account for your child or children can help them later on in life, such as with college costs, moving out on their own, retirement, and so on.
Plus, you can teach your child about how money can grow over time so that they get a better idea of how things work. This can be a great real life example that you can show your child about how them saving money, no matter how little, can add up to a lot over time.
Do you talk to your children about financial topics? If you don't have children yet, what money lessons would you want to pass along as a parent?
This post is sponsored by T. Rowe Price.
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