Reasons to discuss family finances with your children

That is why I propose to discuss our family finances with my 8 year old son. Although it seems like a young age to start these conversations, I do so for three very specific reasons.

1. I want my children to feel comfortable talking about money.

In many homes, money is a taboo subject. As a child, I had no idea how much money my parents earned or what spending on certain expenses meant for the family budget.

Make my children comfortable with the idea of talking about family finances  it's important to me, because I want them to acquire certain habits and values that I feel have served me well as an adult. As such, I've introduced the topic at an early age so it doesn't seem weird to start talking about it later.

2. I want my children to understand the value of money
Although my daughters aren't old enough to add, subtract, and understand the meaning of dollar amounts, my 8-year-old son is. Recognizes that asking me to buy a $10 toy is different from asking for a $100 toy. He also understands the concept of not buying certain things until they're on sale, or giving up certain luxuries to indulge in others.

By guiding my son in my decisions family finances, I help him learn the importance of setting priorities. Right now, the only money she has to manage is the $2 a week she receives as an allowance. But to be fair, you've actually amassed a decent sum of money in the last two years when we also give you the money from the Tooth Fairy, and we hope these discussions help you spend (or save) it wisely.

3. I want my children to be grateful for what they have
My kids are enrolled in a plethora of activities, from soccer to swimming lessons to martial arts. In recent years, they have also taken several cross-country road trips and visited Disney World. They are not cheap activities, and I am not ashamed to share their costs with my son. I also want to explain to him how many hours or days I need to work to afford these luxuries, so that my son not only understands the relationship between earnings and nice things, but appreciates having those things even more.

Talk about money with your children

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You may not want to start talking about money with your kids in second or third grade, and that's okay. But if you want to put your children on a solid financial path, then it helps to start when they are fairly young and impressionable.

If you're not sure where to start, consider reviewing your household budget or highlighting the importance of having money in a savings account. If you feel comfortable doing so, you can also discuss how much money you typically save each month or year and if it fits with your personal goals. The easier it is for your children to discuss financial matters when they live under your roof, the more likely they are to make smart decisions when they are older and are tasked with running a home of their own.

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