Even though we’re still in August, this week summer is unofficially over. That’s because a large number of students are already back in school, while others are getting ready to start next week.
Back to school is a great time to talk to your child about money. Hopefully you’ve done this before your teenager or young adult heads off to college. But even if you haven’t, it’s not too late. Here are some suggestions and advice you should be passing along to your child about money:
- TALK ABOUT IT – Don’t be afraid to talk to your child about money. You should begin the conversation early. I did it with my 10-year-old daughter, Katelyn, when she was just six. She knows how hard her father and I work to make money, how we pay our bills on time, how we save our money and when it’s necessary to spend it. Make sure you explain the difference between cash and credit too. The more you talk money with your child, the more comfortable they are with it themselves.
- STICK TO A BUDGET – One of the most important money lessons to share with your child is having and then sticking to a budget. Sit down and introduce your child to the concept of not spending more than their means. You can give your child an allowance, than show him or her how to save it until they have enough to buy something they want. Make sure you explain the difference between a want and a need.
- AVOID IMPULSE SHOPPING – Little eyes see everything. Your kids mimic you and learn life lessons from you. If you are an impulse shopper and you spend more than your means, your kids are more likely to follow in your footsteps. So avoid bad behaviors, like impulse shopping and overspending.
- IT’S NEVER TOO LATE – Is your child headed off to college? DO NOT let them go without having this conversation! College is one of the easiest times for students, who are away from home for the first time, to overspend and get into debt. Make sure they know they should make wise choices. Explain that they have a certain amount of money to spend and that anything more than that, they will have to purchase themselves or explain to you why they need more money.
If you have other questions about how to talk to your child, teenager or young adult about money, please reach out to me. This is one of my favorite subjects. We are responsible for the next generation and teaching them about money is one of the lessons we cannot forget to pass on.
Have a wonderful week!