Smart Money Kids: Money Management Concepts for Children by Hannah Raybans

Author:Hannah Raybans [Raybans, Hannah]
Language: eng
Format: azw3
Publisher: Changing Culture Publications
Published: 2014-07-26T00:00:00+00:00

Truthful Inclusion

Throughout this book, I have repeatedly stressed that you must teach your kids early about the importance of every aspect of money, from saving to spending. It’s understandable that as a parent, you may want to shelter your child about the harsher realities of money, such as being in debt. However, in an attempt to protect them from money realities, we can end up making the child financially illiterate.

When your child is old enough to leave home, there will be a big bad wolf waiting for them on every corner in the forms of student loan debt, credit card predators, and a car salesman that won’t tell your now-grown child that the car that they just purchased will depreciate as soon as they drive off the lot.

Because money pitfalls are so real, it’s your job as a parent to continuously educate your child about money while they are growing up so they can avoid costly mistakes later in life.

If you are currently experiencing financial woes, talk to your child about the situation in terms they will understand. Don’t tell a child that things are okay if they are not. If your family is not financially stable, it’s safe to assume that your child is aware of this. If not, they will eventually become aware whether you share the information or not. The child will learn what’s going on through tension in the house, creditors calling, or the sheriff showing up at your house with a foreclosure notice (or whatever the case may be).

In order to teach your children about money, be sure to include them in financial decisions. For instance, let’s pretend that there is a new movie coming out over the weekend that every parent is taking their child to see. The movie is highly anticipated because it is a sequel, and people are preordering tickets. Your child, like every one of his or her friends, desperately wants to see the movie. They promise you that if you take them to see the movie, they will behave better, do more chores, and do better at school, In short, they promise you everything under the sun if only you will take them to see the movie. If they are a younger child, they might kick, scream, and throw a hissy fit in an attempt to get you to take them to see the movie.

Explain to your child that you are not being mean or that you are not taking them to see the movie as a way to punish them. Tell them the truth, which is that you will have to take out a second mortgage on your house in order to take him or her to see the movie. In seriousness, explain to them the extortion of going to a theater. This includes the high cost of that delicious, buttery popcorn and other snacks as well as transportation or gas costs. Be honest and explain that you can’t afford to take them to the movie at the theater.

Instead of just flat out telling your child no, this is a perfect opportunity to have the money talk.

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