In the middle of yet another global financial meltdown it seems timely to consider how best to teach our kids about money.
Maybe, with some smart money skills, they won’t find themselves lurching from one crisis to the next, a roller-coaster ride that is no fun at all. How prepared are your kids “moneywise” to face the challenges that lie ahead?
I have often pondered this in relation to our own 3 children aged 11, 9 and 3.
In my day job as a financial adviser I see the power, and the pitfalls, of money all the time. I see spenders and savers and then every possible combination in between. I see people with a laissez-faire attitude to money as well as people for whom money, and decisions surrounding money, are extremely stressful. Mostly I see wildly varying attitudes to money and money management.
Over the years I have come to believe that our relationship to money is highly personal. Often our opinions and beliefs around money have been influenced by our experiences and many of these take place during childhood.
Take me for example. I have always been interested in money matters and who knows if being put in charge of counting my parent’s restaurant takings influenced this. I suspect it did. I grew up in a household where money and business was discussed openly and often. While I am not suggesting you burden your kids with the exact details of the home mortgage (we want our
kids to sleep!) an open discussion about money helps to build awareness. I hope my kids understand and respect money so that they are well equipped for the challenges they may face in the future.
Here are some of the ways I’m approaching this issue but I would also love to hear your ideas. As a wise man once said (my father) “there is no monopoly on knowledge” :