Jason Dunn

In the past six months, I’ve had a few conversations with parents of young kids (8 and under), and none of them are actively teaching their kids about money, instead figuring they’ll do it “later”. According to this study by the UK’s Money Advice Service, basic money habits are formed in kids by age seven. By the time most parents think their kids are “ready”, the money habits are already formed. In these conversations I’ve had, some of the common reasons for avoiding “the money talk” among parents are have included:

The Myth: “My kids aren’t old enough to understand much about money yet.”

The Reality: There’s a great saying that goes “More is caught that taught”, and having been a parent for the past six years, I can vouch for the truth of it. Your kids are watching what you do, and learning from it. They’re watching you spend, and save (or not). They’re watching what you buy, and they’re listening to what you say about money in your home. If you’re having financial struggles, they may be watching you and your spouse fight about money. If you’re not purposefully explaining your actions regarding money, your kids are going to come up with their own interpretations of what money is all about. You’d be surprised what your kids have picked up about money along the way, but don’t leave their education half-finished.

Continue reading Having The Money Talk With Your Kids: Part 1