In this article, we will discuss the importance of talking to children and teenagers about money and finance. We will review the perspective of an expert in this field and provide some tips for parents on how to communicate with their children about money and finance confidently, regardless of their financial wealth or experience in this area.
Embrace Technology
In your opinion, what is the biggest obstacle that young people face when it comes to their financial matters and managing their money?
It’s hard to categorize them into individual buckets because many aspects of personal finance are interconnected. Your spending is tied to your saving, your credit affects your spending, and so on. Therefore, it is often difficult for young people to gain a comprehensive understanding of one area without the other.
I would also add that cryptocurrencies have been standing out over the past few years because young people, including teenagers, are talking about them. In many cases, they are only getting scattered pieces of information. So they say, “Success, this is a hot topic. I should get involved in it.” But if they haven’t mastered some of the basics of general investing, it is hard to engage in this specialized area. There is a continuous need for more information on the basics.
Talk Instead of Teach
How would you recommend parents who are not confident about their own financial situations approach teaching their children about money?
The first thing I tell parents is that instead of using the word “teach,” I try to use the word “talk.” The message should be “talking” with your children instead of “teaching.” The word “teach” implies that parents know more and that is not always the case, especially if the parents are non-bankers or new immigrants to the United States or any other situation. They may be inexperienced, and that is very difficult when the parent is a teacher in any kind of way.
But parents can be conversation managers. Instead of feeling like they have to provide all the answers, it can be like, “Hey, I don’t know a lot about this either. Let’s sit down together and learn about the topic and see if we can find the answers together.” I know this can be difficult too, to admit you don’t know, but it eases a bit of the pressure.
Besides Google, where can parents get more guidance?
What we tell parents when they say something like “Well, I don’t know anything about money” or “I don’t even have a bank account,” is to remind them that they are the biggest advocates for their children. So I say reach out to your child’s school, after-school program, or any other entity and simply ask, “Hello, do you teach personal financial education? If so, how can I make sure my child participates? If not, would you consider it?”
How can parents make money lessons feel less like homework, especially outside of school?
I think it’s helpful to focus on the everyday rather than the big teaching moments. Parents should have ongoing, open conversations when they come up. Now, it’s hard to do that because it’s hard to remember to do it. But for example, if you are out shopping for back-to-school and looking at clothes or notebooks, you can start a conversation by saying, “Well, this is cheaper, but this has better reviews.” And explain your value considerations. That might open the door.
It’s worth the time it takes, even though I feel guilty for shortchanging it! I’ll say, “Oh my gosh, I’ll just quickly order your stuff online and deal with it” just because I want to get it over with and finish my list. But it’s our responsibility to make the effort and say, “Come to the store with me, let’s do this shopping together.” I think that helps a lot, especially with teenagers because teenagers often feel like we are just barking at them. Doing it together, making it a “we” exercise, helps.
Who
It’s Acceptable for Your Teen to Fail
Do you have any final words of wisdom for parents with teenagers? What have you learned along the way?
Here’s the tough part for many parents: let your children make mistakes. If you say, “this is your money for the week,” and your teen spends a lot at the beginning, then at the end of the week, they can’t go to the movies because they ran out of money. Let them feel that pain because it’s a much smaller pain than what will happen when they’re adults and run out of money before the end of the month and can’t afford gas or groceries or pay rent.
You have to be willing to let your child fail a little bit, and that’s the hardest thing a parent can do, which is why I say that Jump$tart Laura has a better understanding than Laura the mom. I have failed too, especially when my son is not wise. It’s hard for me not to compensate him and say, “Okay, I’ll give you a little more because I don’t want you to run out of your snack money.”
So keep talking and working through the exercises, but give yourself a break. Remember when you taught your child to ride a bike, they fell, you didn’t declare the bike broken or the child broken, did you? You brushed them off and told them, “Get back up and ride the bike again.” And when it comes to teaching our children about money, it’s the same idea. Keep at it.
Source: https://www.thebalancemoney.com/talk-don-t-teach-how-one-expert-views-financial-education-5205751
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