Involving your kids in the family finances is a great idea; however, you should be careful what you say. Every family goes through a rough patch and find themselves in financial trouble. Most of the time the financial problems arise from things that are beyond your control such as a lay-off, an injury or illness that prevents you from working, a demotion, or an unexpected bill/expense that you didn’t plan for.
Disclosure: The opinions reflected in this post are my own and may differ from your own.
Talking to Children Under the Age of 12
So how much information should you share with children under the age of 12? Children under the age of 12, don’t understand every aspect of running a household but when financial issues arise it is important that they continue to feel secure. They need to know that you have enough money to provide them with a roof over their head and food in their bellies. It is important that you don’t share that you are having trouble paying the bills but you can tell them that you can’t afford any extras like toys, dining out, going to the movies, or able to give them spending money. Continue to foster a loving, caring home environment and explain to them that everything will be okay. Also, tell them that you are working too improve the situation. The last thing you want is for your young child to feel insecure.
Talking to Your Teens About Family Finances
How much information should you share with children 13 and older? Children over the age of 13 should be included in the family finances more so that they will learn and understand that money doesn’t just show up in the bank account. Instead, that you have to go out and work for it so that you can afford the lifestyle that you enjoy. Learning about financial issues will benefit them when they are older and teach them responsibility. Share with your child that you are having financial trouble and that you are working to improve the situation. If your child is old enough to help contribute to the family finances, you can suggest ways for them to help out by taking a part-time job, mow a yard for the neighbors, or other ways to earn some money.
Games that Teach Children About Money
Like these games? Click on the photo for more information.
Do you talk to your children about the family finances?
Originally posted Oct 9, 2012.
Comments
6 responses to “Do You Involve Your Children in the Family Finances?”
We do talk to the kids about our family finance and we believe it is important to involve them in budgeting as early as possible.
I do feel it is important to teach kids the value of money as early as possible but I do agree with you totally about making them feel secure. I think it teaches them the value of money not giving them everything they WANT too.
My girls are now 16 & 22. I was a single mom, so I did involve them in the finances…not so much when they were younger, but more so as they got older and understood what things cost, etc. I think it helped make them better at handling their money. My 16-year-old especially closely watches her money and saves it until she finds something that she really wants.
Stopping by from Voiceboks!
We teach our 3 teenage boys the value of a dollar, they have a bank account, and if they want to buy something if it costs 50.00 they have to have 100.00 in the bank! We let them know we dont have a money tree in the backyard (wish I did) LOL! Thanks so much for this post!
I didnt know you were on voiceboks! I kept wondering where I saw your posts at before I started talking with you through twitter! I am putting your blog on my blog feed to make sure I see all your posts!
We allow our kids to spend their money how they choose. They have to learn the consequences of not budgeting their money properly. We also teach our kids that money doesn’t grow on trees and that we provide them with their NEEDS first.
Very good post. This was not done in my home as I grew up. We did share some of our financial issues with our kids, but like you share above not full disclosure. This is an excellent way to train up kids so they know money does NOT grow on trees.