Kids can ask some awkward questions about money.
“How Much Money Do You Make?”
As kids get older, they start to understand that people are paid differently.
You’ll have to decide how transparent you want to be with them.
Maybe you don’t want them repeating your number.
Maybe you prefer to be totally candid.
“But simply spitting out a number isn’t usually the ideal response, either.
Before there can be any financial transparency, there has to be readiness.”
Make money taboo, and they might miss out on some important financial lessons.
You want to disclose the info they need based on the money lessons they learn at each age.
In answering the question, it helps to give it some context.
Explain what your income meansmaybe even introduce them to your budget and your expenses.
Use it as an opportunity to have a productive discussion about personal finance.
“Are We Poor?”
Kids could be triggered to ask this question for a variety of reasons.
She wanted some confirmation that our family is secure and she will always be taken care of.
“We are rich in love.
We are rich in that we have each other.
We are rich in every way in life that matters.
Momma, Are We Poor?is a kids' book that actually tackles this very question.
It answers with the same sentimentfocusing away from materialism and onto the things that matter more.
Keep in mind, you don’t want to vilify money, either.
Sure, it does have a hand in materialism.
But it also has a hand in more meaningful thingsoptions, security and freedom.
He agrees that it helps to add a “reassuring generalization” that your family has everything it needs.
“Why Can’t I Buy What I Want?”
Your answer to their question might also include a solution.
Maybe you implement an allowance or set up some savings jars.
Either way, when explaining exactly why you could’t buy something, bemindful of your words.
Psychologist Joseph Cilona says how we talk about money can have a lasting effect on our children.
Tying these emotions to money can create associations with helplessness and powerlessness,” Cilona explains.
“Financial empowerment is formed by identifying that money can be controlled and managed through thoughtful decisions.
This might also be a good time to teach your child the concept trade-offs.
“What Happens If You Lose Your Job?”
Both questions are tough because, sometimes, you just don’t know.
you’re free to’t say you’ll never lose your job.
And if you do lose your job, you’re free to’t say everything will remain the same.
You might have to tighten some purse strings.
Your lifestyle may have to change a bit.
Again, the answer is about educating them and making them feel secure.
Talk about savings, and severance and the money the government gives out for unemployment insurance.
About Our Kidsoffers suggestionson how to talk to kids about this, depending on age.
Children under 5: Be simple and concrete.
They need to the job loss was not their fault and they’ve done nothing wrong.
Children aged 6-9: Are concerned with right/wrong and may have difficulty understanding that job loss may be unfair.
Provide information as they ask for it.
Can contribute ideas to budget planning.
According to the site, this is another question that’s about security.
Reassuring your child that they’re secure, even if things change a bit, is important.
At first, these questions might seem awkward.
But understanding why your child is asking them can go a long way in helping you craft an answer.
Ultimately, your answer should reinforce and teach them healthy money attitudes and habits.
As they get older, they’ll have a solid foundation for making smart financial decisions.
