As the old saying goes “actions speak louder than words.” As parents, we know that what we do – how we act – imprints on our kids at a very early age. And, while it may take time to appear in their behavior – it will. It always does. So being transparent about how you handle your money will show your kids how to be smart handling theirs.
Talk about it
Growing up, talking about money was not the thing to do. Money was a private topic. However, at weekend meals in my grandmother’s apartment, the adults around the table had money discussions. As a kid I was somewhat invisible, but I heard everything. It was quite an education. I heard about the Great Depression and realized as my grandmother washed out plastic bags for yet another use how her behavior was shaped by those tough financial times. It stuck with me, and it shaped my own behavior. (Though I don’t wash out plastic bags, I do make an effort to use reusable containers instead.)
Let kids in on the purchase process
When you are shopping with your kids, talk about what you are planning to buy. Explain how you saved for this purchase. Talk about whether it was a want or a need and how this purchase fell in line with other potential purchases. Explain how you shopped around for the best price or used a coupon. Explain the value of shopping on days when there is a discount. Do the math and show how much money that discount saves the family – and maybe – what that savings could be put towards.
I (we) talk about big purchases with our kids – even now when they are married and living with their own budgets. These kinds of conversations keep the money talks going, which is important as our kids get older and the purchases get bigger. They need to know we are there to listen and talk about their money questions and give them the benefit of our experiences.
April is financial literacy month
For those of who are dedicated to improving financial literacy, April is our month to focus extra hard on the topic of money. But the reality is that people are making financial decisions all year long. Those of us who teach people about money are always around to help you learn not only how to avoid making money mistakes, but also how to recover from them.
My job is to help you understand that the early years of your child’s life are an extraordinary opportunity to teach them how to be smart about money. They listen more readily when they are young and have many years to practice. Starting early and often with the money lessons gives them time to practice with our guidance. While I have seen the success of starting early in the thousands of classrooms where our work is taught, as well as in the letters and notes from parents and grandparents who use our tools to teach the children in their lives about money, I have also seen the impact of teaching “early and often” about money in my own family.
My adult daughters have 401(k)s to which they have contributed since the inception of their working careers. They also talk to us about money. In our home that is encouraged. They even send their friends to us to talk about their money decisions. Which, in my mind, signifies success.
So this April – and all year long – talk with your kids about money and follow that talk with solid actions that help them understand. It pays off. It’s a long play – but so worth it.
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