Children are naturally curious.
How do you spark an interest in money?
As a child, I was an observer. My mother didn’t have money and my dad always lived for the moment. He died with nothing.
Today, with your children bombarded with messages you need to attempt to “sneak” money lessons in whenever possible.
Success comes from changing up old beliefs about how you think you should go “money-active” with the kids, creative thinking, remaining interactive.
Be an Example – Here’s an easy one because you don’t need to say a word – your actions are enough.
You children are monitoring your feelings about finances. What is your outward expression towards debt, savings and general household financial management, especially when communicating with the family?
If your relationship with money is positive or one of control and discipline, your children will learn from the example. If your relationship with money is negative, stressful, extravagant or reckless, the kids will pick up on that, too. Smart money beliefs and actions can lead to smart money imprints by the younger generations around you.
Anytime is the Right Time – One simple question framed in a positive tone may provide the right spark to get a money conversation underway. I call it “financial curiosity.” And you can be financially curious with your child anywhere – at the mall, at the supermarket, in his or her room. If your teen makes a purchase, inquire about it with sincere interest. Out of non-threatening curiosity I ask my daughter for her reasons behind purchases and services she uses. She never feels like I’m prying (at least I don’t think so).
What compelled your child to buy a particular item? What does it do? What other choices are available? Is this item something the family may find useful? How does it work? Will this make their lives better, easier, more fun? How so? Was it a challenge to save up? You’ll gain information about the motives behind purchases and discussions regarding other money matters will blossom.
Get Them Involved – Talking about money is fine, however, it doesn’t compare to having your kids experience money management firsthand – something I call “money active.” Have the kids be responsible for specific money projects, let them fully experience the rewards and feel the sense of accomplishment when the plan is executed.
For example, provide children an opportunity to budget a family vacation or weekend getaway and then all enjoy the fruits of the labor. Partner with them to set savings goals for future purchases, especially the bigger-ticket items. Assist your teens with the research, or offer to match a percentage of the purchase price as a reward for good money habits.
Are the products or services the kids are using viable investment prospects? Now open the door to the investing conversation. And what better way to ignite the money flame — a possible investment into a company that manufactures a product or provides a service the children are passionate about.
It’s OK to Seek Help – So you’re still having difficulty getting the conversation going? Let someone else help you get the fire started. Seek assistance from an objective person who would be willing to provide money lessons to the kids; perhaps someone in the family, or a friend successful with money management, would be excited to share an experience. Don’t be reluctant to seek assistance and allow someone else to tee up your involvement. I’ve witnessed grandparents do a great job at getting through to the grandkids with stories and financial lessons.
Make Money Real Life – Be candid. Your kids like to know you’re human, and occasionally make financial mistakes. They also want to understand what you did to correct a money mishap. You may need to be a bit creative; children are accustomed to movies loaded with action and special effects.
Take time to compose a compelling story about how you faced a financial obstacle head on and came out a winner. Or if the story doesn’t end well, explain specifically what you learned.
Kids are very comfortable with technology so become “money active,” and take advantage of online money-management tools to help kids achieve financial success. For example, at www.moneyasyougrow.org there are activities that guide you to help the children work through money milestones grouped by age, beginning at 3-5 year-olds.
Begin a Money Mindset. Out of each dollar of allowance, figure out how much goes to savings, to charity and to spending. You need to help children establish guidelines early on. There are several products that make this division of money fun. Like the Money Box available from www.Moonjar.com. Also, there is an item called Money Conversations To Go which can jumpstart fun family discussions about money.
Have Children Handle Coins – It’s a great way to get very young children comfortable with money – When my daughter Haley was 3 I had her handle nickels, dimes and quarters, they were shiny and fascinated her. From an early age I would have her place the coins in a bank and shake up that bank from time to time and it would sound like a rattle of sorts. Placing the coins in the bank was a sense of accomplishment for her and it started her on the road to fiscal success – Now, at age 16, she’s become a first-rate saver!
How About a Funky Money Diary? Purchase a three-subject notebook to help the younger kids keep track of the money they want to spend, share & save. Decorate with stickers related to money or cutouts of items the kids want to purchase in the future. Interactive fun!
The most memorable interactions with children about money are ones you may overlook.
You’ll find discussing money at different times, in various places.
Out of nowhere.
It’ll become so routine, you’ll be smitten with delight.
Then you can focus on the tough discussions.
I’m still not ready.