For generations, money was something families just didn’t talk about. That’s a mistake, experts say. You can have some basic money conversations with children as young as 5 years old. Introduce terms like savings accounts and budgeting. When they get older, you can introduce more complex topics, like the family’s financial values and investing.Try to make your conversations fun and not a lecture. A good time for this is around the dinner table, when discussing the day’s events. The crisis also presents an opportunity to discuss what is happening with people losing their jobs or being furloughed, as well how some small businesses have been shuttered. You can have a conversation about helping those in need, whether to consider donating items to families or buying gift cards to help businesses stay afloat.
Needs vs. wants
Help your children understand the difference between what a need is, like food and clothing, and a want, like the latest toy or video game. For those who find their income reduced because of a layoff or furlough, children can witness firsthand as you go through your family’s own needs vs. wants exercise. Explain to your kids what you are cutting back on and why. When your children are earning their own money, have them save up for what they need instead of always buying it for them. Teens can also conduct research on things they want to purchase in the future and look for any coupons or discounts available. This exercise teaches them to be patient and to spend wisely, as they need to learn that sometimes it is necessary to delay a purchase and avoid the temptation of instant gratification.
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