Being a financial planner, talking about money, dreams, goals and needs have become a part of my day to day life. Every minute we work, that’s all we talk about: how to make most of your money, to get the maximum return on investments, how to fulfill your goals etc. And when most clients approach us, we are back to talking about the same. Well, this is a part of our business. But when was the last time you talked about money? Not with your partner or spouses, but with your kids?

Rarely, would be answer most people would think of. Most parents rarely have a talk about money with their children. Many do think, what’s the importance of talking about money with kids, as they will learn when they grow up? Believe it or not, children do pay attention to the way you treat money, if you do not talk to them about it.

If you want to test this, next time, ask your child to describe the lunch at the neighbours house and you will be surprised, as your child will remember the most miniscule details about the food.

Even if you believe that talking to them is not an important agenda, they will pay attention to the way you spend your resources. A few months back, a client had come to saying that he was unable to pay his premium on certain investments, as he was shot on cash. His son, who was with him at that moment, let the cat out of the bag when he asked his father, if that was because of the expensive unplanned holiday they had just gone for a week back.

Talking to children about money is as important as talking about the basic necessities of life. This helps them understand the value of money and also teaches them to be self reliant and be a smart spender of that money.

However, when exactly do you tell your children about money? What are the points that you discuss with them and what are the points that need to be left out? And what do tell them about it?

Finding a right time is always difficult. Don’t wait until you are in financial turmoil to talk to your kids about them. Start young, when they get to know the basic understanding of what money does. As they grow older, involve them in smaller decision making process within the household. A client once brought his son along to his financial planner. While discussing his goals, the son asked more relevant question to the father than the planner himself.  This was an experience the child will carry with him, as he elant more about goals and finances and the inter relation they have with each other, than he could have in a long time. 

A suggestion I give my clients to make talk to their children about money is to play board games like “Monopoly.” This gives them a feel of what it is like to earn, spend, plan, invest and lose money.  
Talking with your kids about money is a start for them to understand the aspect of money. It only takes a few minutes to start a revolution. This time, may it be on money!

e-mail: Sumeet Vaid

Suggest a story idea! Write to us!