How to talk the money talk with kids

We all know that money talks, but when it comes to talking about money, most people are not sure where to begin or who to talk to - whether its their parents, spouse or kids.

In her latest article, Kristin Wong of NY Times discusses some tips on How to talk about money.
Ms.Wong suggests excellent tips on how to talk about money like starting with breaking the silence, starting small or scheduling money meetings. Talking freely with friends and family or being more honest about money are my go-to tips.

As Ms. Wong's article suggests, money discussion is a huge social taboo. Money discussions don't have to be uncomfortable especially when it comes to teaching your kids about it. I often tell parents to not shy away from talking about purchase decisions in front of kids (middle school and up is an appropriate age group). Here are some tips to follow:
  1. Allow children to hear how you come up with decisions for big ticket items like buying a car, buying a tv or other appliances. The analysis and the gray-matter damage that adults go through in making these decisions gives the kids a window into how grownups think about money and make purchase decisions. 
  2. If something is expensive, then say it - loud and clear so your kids can hear it. 
  3. Better yet, ask kids whether they think something is expensive and why. Knowing what is considered expensive and what is not is also an acquired skill and highly subject to affordability.
We may not all come to the same conclusion on each money decision, but I can assure you starting to talk about it more openly and more timely is a great start!

Do you have any tips you would like to share with the readers on how you approach the subject of money with your kids? Feel free to comment below.


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