How Much Should Your Kids Know About Your Finances? - Shaun Stenning

I know of parents who don’t ever discuss money with their kids. “They should be carefree at this age,” they claim. Money isn’t an appropriate topic for family conversation at these homes. But is this a cop-out for preparing kids for real life? And are they missing an opportunity to keep one another accountable to a single goal?

It took many years for me to figure out that I was raised in a poorer home. I had everything I needed up to the age that I felt entitled to more. Junior high ski trips, basketball games, and county fairs alerted me to the fact that we just didn’t have the extra to spend like other families. According to Shaun Stenning, a Serial Investor

Sharing finances with kids is a fine, scary line. In my opinion, it can’t be done too soon. Here are a few acceptable ways to keep kids in the loop, without giving them nightmares: Shaun Stenning said.

Give them an allowance. So many parents choose not to do this, and while I understand where they are coming from, I see benefits from it that I had never imagined. Holding a fistful of their own dollars gives you a way to communicate that just talking about it won’t provide.

Help them to manage their own money. Today is a great time to teach about finance. There are more tools than you can shake a stick at, and most of them are very, very good.

Share your situation – in a general way. I’m suggesting that you help them to understand where the money comes from, the sacrifice that earning entails, and keep them balanced with their focus.

Give them some credit. Kids are not stupid (about most things, anyway.) If you’ve been home looking through the Monster.com job listings for the past month, your kids probably know that you aren’t working.

Give them opportunities to help. You don’t have to wait until you’re cash-strapped to enlist the assistance of the kids. Small things that will make them feel like they're helping include: letting them plan inexpensive meals, giving them coupons to cut, and taking them shopping.

Keep the lines of communication going (both ways.) According to Shaun Stenning, Always encourage kids to ask questions about money and the family budget. Regularly engage them in dialogue about money and what types of things are important for your family.

By not hiding money matters, you are equipping them to deal with the future. By doing it gently, and with age-appropriate experiences, they can learn to feel capable of managing money.