According to studies, 57% of parents have some reluctance to discuss money matters with their kids. As the world becomes more and more cashless, it is becoming more challenging to make money tangible for kids, making it even more critical to empower and educate our kids about finance. When is the right time to bring up the topic without making them obsessed with it?
Research shows that we form a lot of money habits by the age of 7, taking those rituals well into adulthood. As Dr. Regine Muradian states, "money talk and values can be introduced as early as 7 years old. By this time they can have a good understanding that the things they want cost money, making this a good opportunity to create conversations about needs versus wants."
Dr. Muradian has some top tips when bringing up the topic of money to your children whether they are 7 years old or college-bound.
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Tip 1: Explain smart spending versus instant gratification spending. These are the "needs versus wants" items.
Tip 2: Explain credit card usage and how it works. Many kids don't physically see the money making it more difficult for them to understand how you earn and spend the money.
Tip 3: Teach them about proactive communication. Find key moments throughout your day to bring up the topic of finances that allows for educating them in a fun and relatable way.
Turns out money does not grow on trees and unless you win the lottery for your children, you'll need to guide them to encourage healthy spending habits now so it is not an issue later in life. If you'd like more information on Dr. Regine Muradian, who also specializes in anxiety and mental health advocacy for children as well as adults, please visit her website at www.reginemuradian.com or follow her on instagram at @dr.reginemuradian.
