How To Raise Money Savvy Children (hint: it's never too early, but it can be too late).
Raising money savvy children and teaching them to be financially responsible is like giving them the short cut to being self-sufficient. Every day, I hear horror stories from clients about their adult children that can't stand on their own two feet. And what happens? Parents end up picking up the slack “one more time”, often compromising their own financial security.
Let's Talk About It
Money is one of those very touchy subjects for most. Not having calm, rational conversations about money makes it very difficult to teach the next generation how to use their money wisely and become money savvy children. It is important to learn to have unemotional conversations about money. Think of it as any other tool. Would a talk about a hammer get you worked up? Of course not! Money is nothing more than a tool, one we use nearly every day. What is it about money that causes so much stress? Take some time to really drill down into finding your money trigger. Start taking baby steps to opening up the communication channel with someone you trust. Building the “money talk” muscle and showing your children there is no need to feel anxious or fearful when the topic comes up will help them feel comfortable asking questions. And by asking questions and building trust, they will learn about money in a positive, non-confrontational way.