Financial Literacy Month is an excellent time to remind ourselves and our children of financial literacy's importance in everyday life.
We believe it is good to have an open conversation about finances with all family members to help children develop skills that will serve them well into adulthood.
How to talk to your family about finances
Discussing finances doesn't have to be complicated, and working together can create healthy money habits that will last a lifetime — these tips will help you get started.
- Discuss your family's budget and spending habits openly and honestly.
- Help your children save money by setting up a savings account.
- Teach your children why striving to be debt-free is a good goal.
It can be difficult for many people to discuss finances with loved ones. Some may dismiss the subject or feel uncomfortable — even when things are going well — but it’s a good practice so that your family knows where the money comes from and how hard someone has worked to get it.
Making financial discussions a natural part of family life doesn’t need to be scheduled. For example, you can discuss the cost of the new sneakers your child wants or how much money it will take for college tuition. Look for teachable moments that offer insight into personal finance.
Another good starting point is making sure there’s always something happening between parent-child interactions where financial topics come into play, whether shopping at the mall or doing the weekly grocery shopping.
We can’t underestimate the value of financial literacy. It's essential to understand how your money works for you to survive and thrive as an individual or family member. The benefits are many, including being better prepared if something goes wrong financially; by knowing where every penny goes, you can make quick financial decisions to help navigate the ups and downs.
To help accomplish your and your family’s financial goals, contact the professionals at PS&G Financial Partners.