Welcome back to Fabulous Financial Facts. I am Ann Zuraw.
I am always talking about how important it is to speak to your kids about money because it teaches them to be responsible with spending and saving and help set them on a path of financial success. But there are some things that you really shouldn’t discuss with them. Especially if they are under the age of ten.
Eventually, if it hasn’t already happened, they are probably going to ask you how much you earn. Yes, it is important to teach your kids about different career options available to them and how their choices will have different salary levels associated with them. But what they don’t need to know is exactly how much you are earning. One way to handle this is by saying “I make enough to take care of what we need”.
Kids do need to understand the concept of debt, but the amount your family may owe shouldn’t be discussed. Whether it is $100 or $100,000, young ones will have a difficult time comprehending the amount — in their minds it’s a trillion dollars!
Even though the reality is there will always be financial ups and downs, losses shouldn’t be shared with young children. If you have to cut back after a financial setback, explaining it in a simply manner will work. Try saying “We’re trying to save a little more this month, so we are going to eat out a little less and have family movie night at home.”
Remember, security and stability are important to a child’s well-being.
Keeping it simple with Ann Zuraw