Posts Tagged ‘talking about money’

Talking with your children about family money issues and the family budget can be a difficult conversation. Parents are often afraid of scaring their children by making them think that the family is having money issues, but it can be difficult for younger children to grasp the concept of finite money anyways.

Younger children will ask for anything and everything that interests them. They see the commercials for a new toy, but their young minds do not truly understand the real cost of buying it. It is highly recommended to begin having regular conversations about money while your children are still young. Although the concepts won’t fully register with them, it is helpful to consistently frame their wants in terms of the costs. Try explaining that instead of spending $50 on a new game, you need to buy groceries with the $50. This can help younger kids realize the trade-off and it gives them a feel for what needs your family can satisfy for the same amount of money. Try to keep a positive tone to your money conversations and keep your patience if your child doesn’t seem to understand.

Read the rest of this entry »