“Parents who intentionally teach their children about financial management may exert a greater influence on children’s financial knowledge than do lessons learned in high school and those learned in the workplace combined….parental investment in the financial skills and knowledge of their adolescents may pay substantial dividends in terms of youth health, adjustment, and academic success.”

This is from a new study by Dr. Soyeon Shim, from the Norton School of Family and Consumer Sciences at the University of Arizona.

I agree with Laurie…yours is a great question and one I often get from parents. The goal is to create kids who have a healthy “relationship” with money. An analogy I like to use is with food. We teach kids good eating habits by explaining the purpose of food, offering healthy choices, explaining why certain foods are better for us, etc. It doesn’t mean that we can’t splurge on a chocolate sundae or a big Mac every now and then. And just because we talk with kids about food doesn’t mean they’ll become obsessed with it.

It’s the same with teaching kids about money. Healthy money habits and attitudes begin early with discussions on the purpose of money, how it’s earned, how to make good choices, how to live within our means, etc. Again, it doesn’t mean we can’t splurge every now and then. In fact, it’s important that we do teach kids that money should be enjoyed. A lot of life’s opportunities will be missed if our relationship with money becomes one of accumulation.

As with most things in life, it’s really all about balance. That comes through in our attitude and actions.

Good luck, Joan! And thanks for the great question!

Karyn Hodgens

http://seejanesoar.theadventurouswriter.com/financial-role-model-suze-orman/

I think kids learn money management skills not just from what their parents say (explicit teaching), but alway what their parents do (role modeling good financial behavior). So, perhaps if the parents are overly conscious of money, the kids will be too…and if the parents are too frugal to enjoy the benefits money brings, then the kids will too….

Although kids often learn things that their parents never taught, don’t they?!

Thanks for your question, Joan – it’s a good one.