Created by: Fidelis Wealth Advisors
My first article on How to talk to your kids about money was very well received and I want to expand deeper on some of these ideas.
Exposure to Money:
We give my 6-year-old daughter a very small allowance every week. It’s enough to go splurge at the Dollar Store every now and then, which she loves. Every time she receives her allowance, she counts the treasure and determines whether she has enough for a trip to the store that week. After a few fun adventures to the Dollar Store over a 6-month period, and then learning about this magical thing called Amazon Prime, she started getting smart with her money. She realized she could spend a few dollars at the Dollar Store and get a few random toys, or she could save for a couple months and order something even better on Amazon Prime. She now wants to buy something that I would deem much more useful through Amazon, and is willing to wait and save for it. The key though, is she needed to go through the learning process by spending right away on more frivolous things to learn the value of savings for more useful things. I’m glad she’s starting to understand this concept now.
Talk about Money:
My 4-year old son, who watches everything his older sister does, thinks that the Dollar Store is the bank because his only real exposure to money is seeing his sister spend it there. When he asked the question, “Is the Dollar Store the bank?”, it was a perfect opportunity to teach and talk about money. You might want to play hypothetical games with your kids using money as the primary topic. “What would you spend $5.00 on today?” “What do you want to save for?” “How are you going to pay for XYZ?” Let them answer, help them learn, and just talk about it.
Use Physical Money:
Eventually setting up online accounts for your kids is easier and more efficient, but nothing replaces physically touching the money, letting them hand it over to a cashier, and parting with it in exchange for something else. Get a piggy bank, get a lockbox, whatever works for whatever age they are at, but don’t discount the value of your kids physically handling money.
I’m on a mission to help people make better decisions with their money. If we can get the younger generation comfortable with it early, then concepts of saving, spending, and investing will come much easier. Talk to your kids about money. Be open with them about how it works, how you are saving, and what you are trying to accomplish.
Remember, if you don’t teach them, then they’ll probably turn some Tik Tok “influencer” to learn what to do.
Please note by using any of the links provided for your convenience, you will be leaving Fidelis Wealth Advisors website. The hyperlinks are to websites and servers maintained by third parties. We do not control, evaluate, endorse, or guarantee content found in those sites. Your use of such sites is at your own risk.
This blog is general communication being provided for informational purposes only. This information is in no way a solicitation or offer to sell securities or investment advisory services. It is educational in nature and not to be taken as advice or a recommendation for any specific investment product or investment strategy. This does not contain sufficient information to support an investment decision. Any investment or investment strategy mentioned may not be suitable for all investors or in their best interest. Statistical information, quotes, charts, references to articles or any other quoted statement or statements regarding market or other financial information is obtained from sources which we believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. All rights are reserved. No part of this blog including text, graphics, et al, may be reproduced or copied in any format, electronic, print, et al, without written consent from Fidelis Wealth Advisors, LLC. Fidelis Wealth Advisors does not provide legal or tax advice. Please be advised to consult with your investment advisor, attorney or tax professional before making any investment decisions.