Financial literacy for children is highly important.
Before we go there however, let’s talk about my experience; being in business for myself for the last 20 years, and helping other business owners before that, I have learned that everybody has their own unique relationship with money. I have a theory that this relationship begins to form based on your parent’s relationship with money. Following this, what your experiences are around money when you are young and develops from there – for better or worse.
Because of the nature of what I do, being in about 200 sets of books for all types of business each month, I truly have a bird’s eye view of these unique relationship. I see what works well, and I also see what NOT to do. It is this powerful knowledge that I want to bestow on my children on how to handle money as they get older.
I have learned of certain bad habits – people who are literally afraid of money and use that as an excuse to be ignorant, or who stick their heads in the sand when it comes to money. They use that as an excuse to be ignorant, and become their own worst enemy. I do not want this to happen to my children.
Talking to Children About Money
I often talk to my children about income, working for a paycheck, incurring and paying bills, and recently debt. I do this in terms that I feel they can understand. Because I talk to my kids about this stuff, they tend to ask all kinds of questions. Whenever we are out shopping or whenever the topic might come up at home, questions come up. I know that some “experts” might disagree with speaking with my kids so openly about money. I strongly feel that if I don’t, that will lend to my children’s fear of money, a topic considered taboo in the home is generally a topic that has fear around it.
In my research to write this article, I came across this blog which I feel encapsulates the same sentiments I have regarding financial literacy in children.