Why is it important to teach kids about family finance?
By: Phuong Nguyen
Growing up, we were usually taught not to talk much about finance. Of course, you should not discuss your finances with strangers. However, it is important to discuss finance, especially with kids to educate them on how hard their parents work to keep their homes stable. This is especially necessary with single parents. Lots of parents assume that kids do not understand or are not ready for finance and money conversations. However, kids are a lot smarter than we think. I volunteered to teach finance and business for a day at an elementary school, and I realized that kids are very bright, and they are good at asking good questions. They enjoy discussing until they understand the topic. Therefore, it is normal to start some small conversations to educate kids about money and personal finance.
You do not have to tell your kids about how much money you have in your bank account. You can start teaching them some simple small basic math examples. For example, assuming you are paid with 6 apples for your work, after taking 2 apples out for taxes and 1 apple out for buying groceries and gas, you have 3 apples left which you can put into savings. Another great way to show kids how the market works is to take them every time you go to buy groceries. This helps them learn about how much things cost and how to manage the purchases to satisfy the budget. Many small things will make up big things. Your kids will understand basically, how money flow looks like in the house, which will help them manage their budget in the future.
Furthermore, it is okay to tell your kids how hard you work to support their lives. It is important for the kids to learn and appreciate the hard work that their parents dedicate to raising them. Your kids will show you more respect and will become a great teammate.
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