Kids and Money {Financial Talk}
Kids and Money {Financial Talk} – When should you start talking about finances with your children? My husband, Sébastien, is here today to talk about a little situation we came across with our daughter Gabrielle a few weeks ago.
*****
Kids and Money
How do you explain money to kids? How do you mentor a subject that certainly does not interest them yet? I recently came across a situation with my eldest daughter that brought me some thoughts on the subject.
What happened?
It was book fair day at my seven years old daughter’s school. She was making great progress at reading and she wanted a new book really badly. Encouraged by her dedication, I gave her a ten dollar bill and I explained to her that she had enough money to only buy one book and that she should choose one thoughtfully.
When she came back from school I could see that there was something wrong. The first thing she said was that I was going to be disappointed with her. She explained that instead of buying a book, she bought a voice recorder toy. She was feeling very badly and she began to cry.
It’s hard to describe how I felt at that moment. I wasn’t angry. I wasn’t disappointed. I wasn’t sad. I was confused on how to explain to her why she was feeling this way about her purchase. I realized that for a kid, money is a concept hard to understand.
Having no words to explain her feelings, I decided to reverse the process and ask her some questions to teach us a way for mutual comprehension. I thought it was not the time for a confrontation. I thought that it would make the experience more enlightening for her.
Why did you buy a toy instead of a book like we discussed?
How do you feel about the toy right now?
It’s not the end of the world when you make a mistake, but what did you learned from this one?
I’m not an expert on the subject and it’s the first time that a situation like that happens to me, but the idea behind those questions is to make her reflect on her behaviors and her intentions instead of a concept that she doesn’t yet comprehend.
What do you think?
Have you run into a similar situation?
Is seven years old too young to be burdened with money situations?
Sébastien
Wow this is quite interesting. I have a 17 month old baby girl and when I read this I just can’t help thinking how would I react if/when something like this happen to me. money is indeed a difficult thing to explain. Thank you so much for sharing this.
Thank you so much for stopping by my Wall Diaper Bag Post!!! Glad you liked it!
It would be awesome if you could join my Bewitch Me & Titi Link Party that is Live now, I’m so excited about it!!!
Hope you are having a lovely day!
Hugs
Cami @ TitiCrafty by Camila
I do not have kids but have watched my parents and being involved with my nephews. I think back on my life and I first would not have done that,due to maybe hard parents but I like how you delt with the situation at this time. Asking her questions begins a process of trust and communication. I do praise her for knowing she had done wrong. Keep up the good work. There are always the consaquins to everything and not always is a punishment the first thing to be given.
This story is well worth sharing Sébastien as it can be so confusing to know how to respond to certain actions our children surprise us with. It’s moments like these that are beautiful teaching moments, but they often get bypassed because parents today are so rushed and busy. Your approach and instinct to ask meaningful questions is wonderful, it is important to help kids understand their thoughts and feelings around money, and not be terrified of making mistakes with money. Mistakes offer valuable lessons for the future. This is how they learn, and it is far better to start when the amounts are small and the risks are low. “Reflective” conversations about money with children are very valuable because by asking why, what, when, how etc. we can develop like you said, mutual comprehension. It also allows you to respectfully address what guidelines were and were not followed, and how you would like see things handled in the future. This type of conversation is much more educational and beneficial to the child than getting angry and cutting the conversation short. Bravo to you!!
I think its wonderful that she at least realized she did something wrong. I know not all kids have that feeling. You all are obviously doing something right, there. And I dont think 7 is too young to have a money talk. We dont always think about just giving kids some kind of money talk, because situations for it hardly come up. But with one like this, its a perfect time to talk and teach.
Ive had to talk to my kids at age 6 & 9 because they wanted me to buy something for them, and I had a certain budget that those extras did not fit into. They both seemed irritated with me. And finally one of them said you have a credit card just put it on that! They seemed to think a credit card instantly meant we have money. So I had to explain about how credit cards work and how you still have to pay back, and pay more with interest. On the other side, I actually dont have any credit cards (my husband does, but I dont!) I have a debit card for our bank. SO I also had to explain about that too.
Its good for them to know a little about money. It prepares them for the future, I dont think many parents think to teach about it. And its why so many people are not smart with their money and end up in a lot of debt! So great job to you guys!
Thank you all for those kinds words.
I think we often forget that money is a tool that help us reach a goal. It’s not a goal in itself. I want my kids to be aware of that. I want them to lean more toward this concept. I myself am still juggling with the idea so it’s not easy to explain. But what I want them to realize is that money should be used to achieve their needs and not to buy those things pushed by a marketing genius.
I started my daughter’s money education in preschool. I focused more on what she could do with the amount of money she had. She went from being a four year old that knew what sales tax was, to a middle-schooler that learned to budget (by using the magic word “car”), to starting her Roth IRA at 18, to buying her own house all by herself at the age of twenty.
I love hearing stories like that Ann, thank you for sharing!