Consider Talking to Your Kids about Money – Tips for a Better Upbringing

Although a large number of typical parents advocate that it’s not important to include kids in discussions about family finances. According to finance investment companies in Delhi, India, 41% of the parents avoid talking to their kids about money.

But, you will not be able to deny to the fact that discussing finances with children at an early age help in making them financially successful adults. However, there’s a perfect way of doing everything. How do you start the conversation in a way that would be meaningful, comprehensible and engaging to them?

Here are some ideas for how you can train your children about a variety of financial concepts –

Explain Borrowing:

Children may not at all know that your family has certain financial obligations to consider such as paying EMI, getting a mortgage for your home and more. Explain your children the seriousness of such things with examples so that they can relate to these concepts.   For example, ask your children to play a “Loan Game” where they can loan a friend with a few dollars to buy lunch. And, the friend pay it back after a while along with a bag of chips as an interest for the loan – a mortgage is like that. Explain to your child how hard you’re working to pay the interest against the money that you borrowed from the bank. Also, educate your child with the consequences of not being able to repay a loan.

Play Games that teaches money skill:

According to finance investment companies in Delhi, India get involved your child in a game that tells how money works and the importance of money. Try games like Pay Day or Cash flow or any real life game that simulate real life financial strategies and situations in an engaging way. Activities or games that show how money works would be helpful for your kids especially if you’re hesitant to talk to your kids about money.

Starting early is the key:

With a little bit of grooming if you can educate your child with good money skills then there can’t be any better investment that you can ever make. The trick is to start money conversations early in life thereby educating your child about more complex topics like saving for college and buying a home.

And, eventually the investment will pay off: You’ll be more likely to see your children grow into happy, financially confident adults!