Category Archives: Family Finances

Is it a good idea to discuss about the family finances with your kids?

Can you tell how much your parents earned when you were just ten or eleven years old? Most of the people will not be able to answer a question like this one. What’s the reason behind it? Answer is that there are many families who do not want to discuss about their finances with their kids. The kids won’t even come to know whether they belong to a rich family or not until they get some expensive gifts from their parents in their birthday or during the Christmas. When a vacation is canceled by the parents due to some financial problems, the kids think about why it got canceled or if their parents are bringing home a box of donated cans from a food drive.

There are many families who believe that they should not be discussing about their personal finances with their kids. They think that the kids do not have to interfere in such kind of family affairs. What happens if you have been buying all expensive gifts and food items for your kids and suddenly you lost your job and you could not afford buying these items for your kids anymore? The lack of income is going to affect the lives of the kids so their should be some kind of communications with the kids about family finances.

Discussing about the family finances does not mean that you have to show your pay check to your kids every month or have them make important financial decisions but it is a good idea to keep them involved and informed. It is a part of teaching them about money and life. Kids are going to follow your footsteps. If you do not discuss about the importance of money with them, they will not realize its importance when they grow older.

Teach your kids about the importance of money. This is something that they won’t learn in their young age in the school. Make them aware about the importance of money, savings, investment, and most important staying away from credit. If you teach them good lessons, I am sure you will also save yourself from falling into any kind of financial mess. You can set examples in front of your kids if you are managing your finances properly.