by Katie Tucker 
When is the best time to talk to your kids about money? Right now. Your kids are learning about money from someone right now. While the internet has some great resources for teaching your kids about money, please don’t let it be from an out-of-touch influencer. Here are four tips for talking to your kids about money.
Start Slow
As soon as your child can count, introduce them to the concept of learning how much each coin is worth and why these coins and bills are important. Don’t go overboard. You definitely don’t need to schedule a sit down time every day to review your bank account balances and retirement plan contributions. Start with simple money questions that are age appropriate. As they get older let them count out the money at the grocery store and figure out how much change they get back. It really can be a fun learning opportunity.
Here are some conversation starters.
For Toddlers:
“What do we use to buy food or toys?”
“Have you seen coins before? What do they do?”
For Early School-Age Kids:
“Why do we need money at the store?”
“How much is this coin worth?”
For School-Age Kids:
“How much money do you need to buy the pack of gum and baseball cards at Target?”
“How much change will you get back if your purchase costs $13.75 and you give the cashier $15?”
Be Honest
Show them the good, the bad and the ugly. Help children understand that you can’t have everything you want and the difference between needs and wants. Talk about debt and maybe even tell them what you wish you were doing better and how they can make sure they don’t make the same mistakes.
Here are some conversation starters.
For Toddlers:
“Is $5 more or less than $3?”
“Do we need chocolate milk, or is it something extra we want?”
For Early School-Age Kids:
“Which amount gives you more spending power: $5 or $3?”
“Is chocolate milk something we need every day, or something we choose because we enjoy it?”
For School-Age Kids:
“How does having $5 instead of $3 change the choices you can make?”
“Why is it important to know the difference between needs and wants, like chocolate milk or other treats?”
Pay an Allowance
Money doesn’t grow on trees, you have to earn it. Start an allowance system with your kids to help them learn the value of a dollar. Start with small chores around the house that turn into money in their pocket. For toddlers, this is likely too complicated. Instead, they can learn about getting rewards for doing simple chores. As they see the money adding up, they may even want to do more! This is a great opportunity to introduce them to Alltru’s CUbby Youth savings account and let them see how their money grows by just keeping it in a credit union account.
Here are some conversation starters.
For Toddlers:
“Because you helped mommy clean the dishes, you can have more tablet time.”
For Early School-Age Kids:
““When you finish one chore from the chore list, you’ll earn $1.”
For School-Age Kids:
“If you want $10 to take to your playdate next week, what chores to you need to do first?”
Talk Values, Not Figures
Kids need the core values like savings, budgeting, and giving. When kids are so little, you can start by having them watch and help you practice. I remember handing money to charities outside of grocery stores during the holidays when I was a kid, even though I didn’t understand the depth of the financial impact. To help your kids prepare for the future, encourage them to start a budget and see how much they need to save, how much they can spend, and how much they should give. These are the stepping stones to a strong financial foundation.
For Toddlers:
“Let’s give this money to the man in the Santa suit at the store today.”
“Sharing our money helps us be a good neighbor.”
For Early School-Age Kids:
“Let’s give this $5 to the man in the Santa suit at the store today.”
“What happens if we spend all our money and don’t save any?”
For School-Age Kids:
“Can you count $10 to donate to the man in the Santa suit at the store today?”
“How does saving money now help you reach bigger goals later?”
Start Talking About Money
Your child’s future is the most important investment you’ll ever make, so start the conversation early. The trick is to start small and at home, using everyday examples to teach your children about money. Over time, you’ll be able to explain more complex topics, such as saving for future events, getting a credit card, or buying a car. Eventually, your time investment will pay off when your kids are financially prepared for adulthood.
