Are you talking about money in your home?
Did you know that by simply talking openly about money with your family, can help them to have a positive relationship with money?
Sadly, most adults were not taught about money by their parents. For generations, money conversations have been "the topic to avoid". Yet, teaching your own children about the fundamentals of money is more important than ever. As we are upon interesting economic times, there has never been a better time to be the money leader in your home.
START NOW: create positive money habits for your family
With the invention of credit and debit cards as well as pay apps, it has become harder to develop healthy habits with money. So many families are no longer using cash so it makes it a little harder to teach children with actual paper money.
What can you do with your children to help them have financial success?
talk about money!
Have regular conversations in your home // Begin by teaching them the basics like counting money and purchasing items at the grocery store. You might even take the time to buy them a piggy bank so that they can begin to understand what it means to delay gratification by safely storing their money.
Whenever it becomes age appropriate and your child matures, talk to them about what your own spending plan looks like. Spend time as a family to talk about needs and wants as it relates to money coming in and out of your household.
Pay attention to the words you use // Using positive money words versus negative or complaining ones is a critical piece of cultivating healthy money habits in your children. When children hear phrases like, “we can’t afford that,” “we don’t have as much money as we used to,” or “what do you think I am? RICH!” we unknowingly send money messages to children that have the power to shape their beliefs about money.
Instead, you will want to use phrases like “that sounds fun, but it’s not in our spending plan this month. Perhaps we can work that in next month.” Depending on what they are asking for, you could also say, “this is something that you should put on your birthday list this year.”
In my private financial coaching practice, I work with women who are taking control of their money, and we spend a great deal of time unlearning negative money messages that were handed to them in their own childhoods. Being aware of your own association with money can help you determine if this is something that should be worked on.
Create money goals as a family // Is there a vacation you’d like to take? Do you need a new TV or computer in your home? Teaching children how to set money goals and the steps it takes to reach financial goals is a very important skill to pass on. This can be a fun topic for the family. Try to do this as often as possible so that it becomes a regular part of your family culture.
use AN ALLOWANCE
To give an allowance, or to not give an allowance…that is the question (queue my best Shakespearian accent)!
Allowance is a good way to teach children the mechanics of money. Keep in mind, it is not the size of the allowance, simply the act of working to earn money and the pride that comes with spending your own money.
4 MAIN FUNCTIONS OF MONEY:
Money is earned.
Money is spent.
Money is saved.
Money is given/donated.
These are very basic principles that can be developed and expanded over time as your children mature. If you use these principles as a framework, you can be sure that you are instilling positive money habits. You can go deeper on each topic and eventually, once you have teens and young adults, showing them how to invest what they’ve saved allows them to see how saving money paired with compounding interest is what truly grows wealth and changes lives.
take care of your own financial education
I bet I know what you are thinking: “I don’t know enough about money to pass along good money habits to my children.”
In the early days of teaching money, there is not much you need to know in order to start creating a foundation of money principals for your children. As children get older, it is important that you are modeling good financial decision-making skills. Learning together with your teens and young adults really shows them how important it is as a life skill.
Here’s what you can do to help you get better with your personal finances:
- Create a monthly spending plan
- Set long-term and short-term financial goals
- Have healthy spending boundaries, like living on less than you make
- Understand how you spend money and be sure that you are not using it as a coping strategy.
- Read books and listen to podcasts about money
- Pay off high interest debt
- Look for ways to increase income
- Get help from a professional financial coach or financial advisor if you need help managing your money or need specific financial advice.
Want to grow in your own financial education?
Get started with Single Mom University today! With over 30 classes on finances alone, SMU is the best life-skills resource for single moms. From learning about credit to career development to estate planning, we got you covered!
it's up to you
Unfortunately, financial literacy is not a subject that is often taught in school, so creating money habits and teaching money in your home is extremely important. But here’s the good news, it is never too late to start!
Meet the Author
Katie Gibbons is a homeschool mom and entrepreneur. By providing financial education and coaching, she helps women manage their money so they can gain clarity and peace of mind. She believes life is best lived by discovering the simple pleasures in the everyday. When she is not running her businesses or loving on her family, she is looking for any excuse to meet up with her girlfriends. She lives in Austin, Texas with her husband, James and two sons. Connect with her on her website at www.thekatiegibbons.com.
The Life of a Single Mom is a national, faith-based, nonprofit that exists to see that no single mom walks alone. To date, the organization has worked with hundreds of churches to start a single mom’s support group in cities throughout the U.S. and beyond, as well as having served hundreds of thousands of single mothers with a variety of programs. Offering a large array of books, curriculum, training materials, online instructional videos, podcasts, newsletters, life skills education, and more, TLSM is one of the largest single mom organizations in the U.S. The robust selection of single mom programs focus on empowering single moms to grow spiritually, emotionally, financially, and parentally through Single Mom University, Single Moms Across America, the National TLSM Single Moms Conference, boot camps, and a variety of other programs. For more information, visit www.thelifeofasinglemom.com.
