Talking to Your Child About Money

By Dowling & Yahnke Staff on September 4, 2013

Categories: KIDS & MONEY

Do you encourage your children to talk about money?

Most parents believe that they do, but not nearly as many children think that their moms and dads are initiating conversations about money.

That was one of the many fascinating results of the 5th Annual Parents, Kids & Money Survey by a large mutual fund company.

As you’ll see in the chart below, 42% of parents strongly agreed that they encourage their sons and daughters to talk about money issues, but only 19% of children responded the same way.

Just as remarkably, nearly one in four children (24%), whose ages ranged from 8 to 14, said their parents actually discourage them from talking about money.

Source: T. Rowe Price 5th Annual Parents, Kids & Money Survey

What Children Want to Know

You can be better prepared to talk to your children about money if you know what they are interested in learning. At the top of children’s list is a curiosity about how banks and credit cards work.

Winning the Lottery

Clearly, children need a tremendous amount of financial education. For proof, you need look no further than how they responded to this survey question:

What is the most likely way that children believe they will have a million dollars when they grow up?

As you can see below, only 21% of youngsters suggested that they would amass a million dollars by saving and investing in stocks and bonds. Nearly as many believe that they will reach that milestone by winning the lottery!

Talk to Your Child Today

If you haven’t had a money conversation with your child lately, consider this a friendly nudge.

Look for opportunities for your kids to learn about financial issues and entrepreneurship through programs offered by Junior Achievement or get them involved in a game like Monopoly at home to spur discussion.

And remember, the best way to impart good money skills to a son or daughter is to handle your own finances wisely.