Post
Experience Project iOS Android Apps | Download EP for your Mobile Device

Discussing Money With Children

I do not want my kids to EVER worry about the family's money. But recently there have been questions coming from all of them except Katherine. It was probably brought on by the fact that my financial situation has changed a bit because I've become pregnant with twins and have to put away extra money to tide us over while I'm off work on maternity leave and also to pay for the babies cribs, strollers, etc.

But that means cutting back on certain things that once were not an issue, such as ordering out food or buying mostly brand names, the type of school supplies we can buy, etc. and the kids are starting to ask questions. Catherine is the oldest and we've talked a little about money with her so she hasnt been as curious as the other three. With my second and third oldest I would just say "I'm not in the mood for pizza tonight, let's just eat in okay?" or when shopping just drive to a different store and say "Well, I thought it may just be nice to go somewhere new for a change." but the second oldest, Cole, has figured out its a money thing and told his little sister and brother "Don't bother mom about going to the movies, she stressed about saving money!" he was trying to be helpful, but as a result they all ask me about why I'm trying to save money, are we broke, are we poor, etc.

I have no idea what to say without burdening them. I also don't know if my younger kids aged 5 & 9 can handle this conversation yet, if they can understand it. I discussed money with all of them, except the 5 year old, but not in a "real" way. They understand what money is, that everyone has a different amount of money and that how much they have is there business. They understand you work and earn money and that you save money, etc. But they know nothing about OUR financial situation. Cole is about the same age Catherine was when we talked to her about money so I'm less concerned there, but what should I do about the other two?


Any advice would be appreciated!
Tropicana55 Tropicana55 31-35, F 2 Responses Aug 5, 2012

Your Response

Cancel

It's never to early to teach kids how to manage money. The board game Monopoly is a really good game to teach them about managing money. Just explain to them while you're all playing that they are learning while they play and continue to tell them what is happening as they move along. Yes it's a game and its meant to have fun learning and playing. Take advantage of it!!!<br />
<br />
Always talk about how to manage finances responsibly. Tell them about your job and how much you have to pay for bills, food, health, etc to insure everybody is properly cared for, and how long it takes to save up the money for the household bills Teach them their two most important economic factors, the difference between ASSETS and Liabilities. Assets are things you own 100% outright, or you intend on owning and someone else is making payments for you such as rental property, etc. Liabilities are: 1) things you pay someone else to use or 2) things you are making payments on with the intention of owning item outright thus eventually making it an Asset. Get them the book Rich Dad Poor Dad Things Rich People Teach Their Kids by Robert Kiyosoki. It's the best basic book on money management. I bought each one of my kids a copy!!!!!!! <br />
<br />
Regardless of how we choose to live our lives, at least here in America, how well we're prepared to manage our money determines whether we enjoy our lives or hate our lives. It's sad but very true!!!!! <br />
<br />
Although our brains have the capacity to learn until the day we die, or contract a neurological disease, it's developing from a time early in the womb up until 13-17 years of age. This is the optimal time for us to learn!!!!!!!!!<br />
<br />
Most Importantly Always Remember IT'S ALL ABOUT LOVE!!!!<br />
<br />
Have Fun Teaching Your Babies To Have Fun Learning How To Mange Their Money!!!

think you have to be up front with them<br />
<br />
i know we talked about my with my gf mother then her as my mother inlaw all the time but it was more about the other sides of money like we were working to hard<br />
<br />
but we had plans for after school and we did not want to have to work about school<br />
<br />
and looking back i wish we had spent more on each other as whenshe was killed i was reported mia and out mother took her won life thing her kids were dead the **** step father got every thing we had work for from 12 till 19 he even sold our home