How to teach your kids about money About Finances

In a world where many adults grapple with financial woes, teaching kids about money is more crucial than ever. Financial literacy begins at home, and how to teach your kids about money on can set them on a path to becoming financially confident adults.

I’m thrilled to partner with SunTrust Bank to share these valuable insights. It’s essential to empower your kids with financial knowledge, and as a parent, you can pave the way for raising financially savvy children.

Before we delve into these valuable tips, a quick disclosure: I must credit my parents for these pearls of wisdom. I’m still relatively new to parenting, with only nine years under my belt, while my parents have successfully raised children who maintain excellent credit scores. Their track record speaks volumes about the effectiveness of these strategies.

Before we proceed, let’s clarify that these tips primarily target tweens and younger children. As teenagers enter the workforce, navigate car expenses, and deal with insurance, financial matters become more intricate. These guidelines lay the groundwork for nurturing financially responsible kids.

How to teach your kids about money:

Provide an Allowance

To teach your kids about money, they need to have some to manage. Starting with an allowance is the first step. It doesn’t have to be substantial; a few dollars a week will suffice. The goal is to introduce the concept of money to your children, not to fund their lavish desires. However, it’s essential to separate the allowance from chores. Chores are about contributing to the family, not earning money. This separation instills the idea that money management is distinct from personal responsibilities.

Avoid Handing Out Money

An excellent aspect of giving kids an allowance is that it changes their perspective on spending. When they request a treat at the store, you can respond with, “Did you bring your money?” or “Do you think you have enough for that at home?” This approach encourages them to appreciate the value of their own money. We, as parents, refrain from making additional purchases outside of birthdays and holidays. Consequently, if our children desire something extra or special, they must rely on their allowance and birthday money. This approach fosters a sense of satisfaction when they save for and purchase items they desire.

In essence, the first two steps seamlessly introduce the concept of saving to your children.

Engage in Conversations About Money

If you’re reading this, you likely understand the importance of discussing money with your children. It’s crucial to eliminate any taboos surrounding the topic of finances. Even at a young age, kids can comprehend that work is necessary to earn money, which, in turn, is required to cover various expenses, such as housing, clothing, and food. Promote open conversations about money within your household to reinforce these concepts.

Discuss Savings Goals

In our family, taking summer trips was a top priority. My parents, while supporting a family of five on a psychotherapist’s income, made it clear that choosing vacations meant sacrificing other luxuries. Dining out was a rare occurrence, cable TV was absent, and fancy clothes were a rarity. If we grumbled, we were reminded of our family’s priorities. While it might have seemed frustrating as kids, it ultimately made sense, and we learned to appreciate these experiences.

Of course, it’s essential not to burden your children with financial stress, but discussing the difference between needs and wants can be enlightening. When our son was concerned about the cost of his new glasses, we explained that eyeglasses are a necessity, and we were more than willing to invest in them. Simultaneously, we emphasized the importance of taking good care of them due to their cost.

In essence, teaching children about money can be challenging if you’re not confident in your financial knowledge. It’s often difficult to teach something you’re not comfortable with, whether it’s cooking or financial matters. SunTrust’s onUp Movement is dedicated to enhancing financial confidence, offering valuable resources and guidance to help you achieve financial well-being one step at a time. As you conquer your financial concerns, you’ll be better equipped to educate your children on the subject.

SunTrust Bank is dedicated to illuminating the path to financial well-being. When you feel confident about your finances, you can save for your goals and make informed spending decisions. The onUp Movement is a community of one million strong, and it’s growing. Join now to take those initial smart steps toward building your financial confidence.

How to teach your kids about money! This is a sponsored discussion I’ve crafted on behalf of SunTrust. The opinions expressed are my own, and I genuinely believe in the value of these financial teachings.

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