How to Talk to Your Kids about Money

By age seven, many children’s money habits are already set. They view those around them and form their own opinions on how money is saved and spent. So how should you start talking to your kids about money and become a positive example in their lives?

Start Slow – Start by simply answering your kids’ money questions at an age-appropriate level. You may be surprised at what they want to know more about.

Be Honest – Instead of hiding your financial failures, or covering it up when money is tight, tell your kids the truth. This will help them learn valuable lessons when it comes to managing finances.

Talk Values, Not Figures – Kids first need to learn values and concepts like saving, budgeting, paying down debt and giving.

Set Family Goals – Let your children sit in and contribute to the family budgeting meetings. Remind them that setting a goal as a family may require sacrifices.

Learn About Money Together – If you are not fully knowledgeable on topics such as investments, CDs or Roth IRAs, that’s okay! Admit you don’t know the answer and do the research together to learn more.

The best way to put these concepts into reality to allow your children to see how money works, is by opening their own youth account. Youth accounts give children the opportunity to save their money with interest, practice writing their own deposit slips and making withdrawals at the credit union. It’s never too early to start the conversation with your children on financial fitness. Stop by the credit union to see how we can help you get started!