Bridging the Gap: How to Start Talking Money with Your Kids

In a recent survey, it was revealed that 56% of Americans had no money discussions with their parents, indicating a significant gap in financial literacy among adults. This lack of education can lead to poor financial decisions and a lifetime of financial struggles. The good news is that it's never too late to start teaching your kids about money, and experts have some recommendations to help you get the conversation started.

First, it's important to understand that money isn't just about numbers and transactions. It's also about values and priorities. Jen Hemphill, a financial counselor and host of the Her Dinero Matters podcast, suggests starting the conversation by discussing your family's money values and goals. This will help your kids understand the "why" behind the "what" of money management.

Next, make money a part of everyday conversations. Talk about money wins, like finding some money on the street or resisting impulse spending. This will help normalize money conversations and make them less intimidating. You can also involve your kids in financial decision-making, such as picking items at the grocery store or comparing prices when back-to-school shopping.

Another key aspect of teaching your kids about money is to be transparent about your own financial journey. Share your own money wins and challenges, and explain how your experiences have shaped your financial values. This will help your kids understand that everyone makes mistakes and learns from them.

When it comes to teaching specific money concepts, start with the basics. Introduce the difference between needs and wants, and discuss the importance of saving and spending wisely. You can also use everyday objects to illustrate these concepts, such as asking your child if milk is a need or a want.

As your child gets older, you can introduce more complex money concepts, such as saving for short-term goals, understanding interest, and earning money through chores or a part-time job. It's also important to adapt your money discussions to your child's unique interests and learning style. If they love video games, for example, discuss how game developers create, market, and monetize their products.

Remember, teaching your kids about money is a lifelong journey, and there's no one-size-fits-all approach. The most important thing is to start the conversation early and make it a regular part of your family's life.

By following these expert recommendations, you can help your kids develop a solid foundation of financial literacy that will serve them well throughout their lives. So don't wait any longer – start the conversation today and help your kids bridge the gap in financial education.