Marion Syversen was in for this week’s Finance Is Fun, continuing the conversation about how to talk to you kids about money.
Ultimately, we want our kids to experience good and miss the mistakes that we made.
In finances we feel the same way. The federal Consumer Financial Protection Bureau wants to help with this goal. They state that in their research adults feel good about their finances when they know how to manage the day-to-day bills, have savings, are making progress towards their financial goals and have some freedom. When we want this for our kids we have to educate them.
So this federal entity has a web site with ‘conversation starter’ questions to get you going whether you baby is as little as three or a teenagers and into college.
One concept for three year-olds is that ‘spending money always involves making a choice,’ There are some adults who have trouble with this insightful concept.
For middle schoolers the concepts develop. One concept is the idea of ‘planning before you spend.’ This is true truth as these are the conversations that need to be had with some adults we know who never heard this and have very little idea of how to handle money.
On this site for older young adults the conversations are around W-4’s, taking money out of gross pay for taxes, the need to save several months’ salary for emergencies, and the value of compound interest in saving.
The site has lots of resources, printable brochures and blog posts exploring practical issues and conversations. The program is called Money as you Grow, you can find the link here: consumerfinance.gov/money-as-you-grow