Financial Psychology: FinaNcially Curious Kids

Tough Money Questions? We’ve Got Answers.

The facts don’t lie. Most of us don’t like to talk to our kids about money. We dutifully teach them how to tie their shoes, we remind them to wear their bike helmets, and some of us even tackle the birds and bees with our littles. When it comes to money, however, we often stay mum. It’s time for that to change.

Whether we like it or not, kids learn the vast majority of their money habits from their parents before they’ve even hit double digits. The buck starts with us.

But when it comes to answering tricky money questions from our kids, we all get a little stumped sometimes. When hit with a tough question (“How much money do we have, Dad?”), we often evade, dodge or change the subject. But with a little prep, we can be armed to nail our kid's money queries - no matter what their age.

5 Ways to Answer Your Child’s Tough Money Questions

1. Praise your child’s curiosity

Whatever the question, parents can praise their kiddo's curiosity when it comes to money matters. By starting a response with, “What a great question. I’m so glad you asked me that,” parents are showing their kids that talking about money is a good thing. (As an added bonus, this response also buys a moment to think through an answer when questions get tough!)

2. Keep your tone upbeat and conversational

So often it’s not what we say, but how we say it. If we keep our voice upbeat, we are signaling to our children our willingness to engage in the money conversation. We are also encouraging them to come to us with tough questions, of any kind, as they grow.

3. Be as open and honest as possible

Money questions come in all shapes and sizes, and there’s no doubt some are harder to answer than others. Parents should do their best to answer their kid's money question without dodging, evading or shutting down.

While we may not feel comfortable giving our first grader full financial disclosure, we start small and use early conversations to build upon as our kiddos grow. Even better? We call upon our own money experiences (good or bad!) to give our kiddos personal perspective on finances.

4. Have the conversation

Some of us find it rude to talk about money. Others don’t feel armed with the right resources to answer our children’s money questions because our own parents never educated us. But when it comes to starting the money conversation with our kids, it’s time to leave our preconceptions at the door. By engaging in money talk with no judgment or high emotions, parents can help kids learn about money and navigate their financial future in a straightforward, pragmatic way.

5. think through your answer

Even the most sage parents get stumped sometimes. When hit with a particularly tricky money question, it’s ok to carefully weigh a response. “You asked a really great question that deserves a great response. I’m going to take a little time to think it through and circle back with you tonight.”

The key? Make sure you find time to actually return to the conversation.😉

Even the littlest money moments between kids and parents can pay off big in the long run. By answering tough money questions and engaging in money talk with our kids, parents are going a long way in starting an essential conversation for the future.

This conversational framework can help parents approach tough money questions. Follow along @benjamintalks and keep reading our weekly newsletters to learn how to make the most of every day money moments, both big and small.

Do you have any money questions in mind?