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My first silver bulb moment happened when I was five.
I discovered the Holy Grail for a child: the table.
The concept of making additional responsibilities in exchange for a weekly payment so I can have my “own money” replaced my life. I temporarily negotiated a $4 weekly salary with my parents. With new singles in my Hello Kitty purse, I’ve reached a new freedom.
Fast forward to this day and I am a mother of two young children, my six-year-old understands the basics of money: it is an invisible tool (thanks to credit cards) that allows us to get what we need and need. understands that to make money you have to “go to work”.
But when I recently described what an assignment is to him, he didn’t seem very interested. I asked him what he might need to do to win an assignment and he said, “Help him build a tree house?” before returning to hunt down his little sister in the house. He’s not as interested as I am in building his own pile of money. And I’m fine.
He has a company where he sells his tooth fairy cash. We also talked about buying anything means getting nothing else. And listen when I record my podcast, so maybe I’ll get subliminal money messages that way.
Raising young people who care about their money or respect their money is an ongoing effort. It is vital for some young people to be more interested in learning about money than others and, as parents, we want to find them where they are.
As you go through the stages of your lives, here are some smart practices for talking to your young people about money, whether they’re seven or 17.
Children are willing to be informed about the basics of cash from kindergarten as they socialize and compare the world outdoors. They may start without considering the things other friends have. You can ask several times, “Can I have this toy?” As parents who don’t need to spoil our children, we can also just say “no” over and over again.
But saying “no” also without an explanation can send the message that nothing is negotiable. It may seem that if you don’t have the cash (or preference to spend) now, you’ll never be able to have it. or you’ll allow it, as adults, we know this isn’t realistic.
Instead, you can teach them the principles of monetary planning. Explain that you won’t buy the toy now, but if you need it, you can come up with a strategy. For example: put it on a list for the next vacation. or birthday, save your cash (which my child recently made to buy a toy) or give away existing toys before opting for something new.
You give them a understanding.
As the youth grow up, they will begin to compare their family circle reports and possible monetary options with those they see in their friends’ family circle. It is vital for them to have a context about the history of their circle of relatives, how he was raised, and his values and traditions.
They can ask complicated questions like “How much do you earn?” or “Why can’t we go on vacation like my friend does?”You can honor their questions and provide answers without moving on to the main points on your bank balance. He attracts his interest by asking, “What makes you think?” and locate the source of your question. They would probably have heard a verbal exchange at school about cash and that piqued their interest. Or you might have heard that a friend’s mom lost her homework and they’re worried now. you can take him to make sure everything is okay and that he can keep his salary for you.
Even if they may not be old enough to find a “real” job, tweens can start participating in community concerts such as babysitting or dog walking. Encourage your teen, if he or she expresses interest, to start saving for higher expenses that don’t fall into the “needs” category. Creating your own source of income teaches responsibility, responsibility, and early entrepreneurship classes.
For example, on one of my Facebook teams in my city, a mother posted that her 11-year-old son taught 30-minute virtual chess classes for $5 according to the session. I think it’s an artistic way to be your own boss. You can settle for that!
Teenagers are more mature than we give them in terms of cash. During the last recession, I was a columnist for Seventeen magazine and won several emails from frustrated schoolgirls because their parents didn’t talk about job losses or that the Family Budget circle had become tight. They may simply feel that their parents were pressured by cash and were looking for help, but they didn’t know how to handle it.
Detailed verbal exchanges about cash are really appropriate at this point. You ask your child if there are savings for college (which I would have liked my parents to do). If there are no savings, you can make a combined plan on how instead of avoiding the combination of topics, a fair verbal exchange can inspire your child to look for a summer job, apply for scholarships, or attend an affordable network school for the first two years.
Carol Pittner, co-author of Raising Your Money-Savvy Family for Next Generation Independence, recalls her teenage years in the 2008 recession and her parents’ candid conversations with her about the economy have an effect on their families. “We’re going to be fine, ” but they gave more qualitative details,” he says now.
“It says things like, ‘Your college fund has been affected, but we can still pay for college. We’re not leaving the house. In fact, this is probably the most productive time for us to adopt the renovations we had. ‘And that kind of informal conversation, but detailed enough to make sure things were happening smoothly.
Discussions about cash are essential at this level because they reflect the fact that cash is not, and deserves not to be, a taboo issue.
College is a breeding ground for monetary mistakes. I speak from experience. I had $5, 000 in credit card debts when I graduated. I also found out in my checking account several times a day, case it cost me a $25 payment and a lot of embarrassment.
It would have been a lot worse if I hadn’t known my parents would check my finances. In our weekly phone calls, my mom asked me what I had bought that week. My father had access to my existing account so that he would simply see my account balance at any time. Was it a helicopter? Maybe. But I needed pressure. It all comes down to gathering your young people where they are.
Other vital conversations you might have during college years include meeting a school budget, repaying student loans when they graduate, and negotiating before accepting their first job.
You can (and should) communicate with your children about cash, regardless of age. A little preparation can now lay the groundwork for your future.
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