Many families struggle with when to let their children in on their conversations about money or how to approach their parents with the desire to help or rest in the knowledge that they have prepared financially.
My advice? The earlier, the better.
Depending on the ages of your children, openly discuss your budget, financial plans, and goals. Just as you talk about the Lord as you go along the way, teach your kids about handling money throughout the week.
- Involve your kids in shopping. Model them how to buy what you need and do not want (except for special occasions). Demonstrate self-discipline.
- Give your older kids a clothing allowance. This helps them learn to shop seasonal sales and save for what they need. Once they have a job, they should have a checking account and know how to use a debit and credit card properly. And the importance of paying it off each month! Read books, attend seminars together, and impart the truth that God owns it all. We are His stewards.
- Teach them about wise purchases. Talk to them about buying used vehicles and real estate. Learning about appreciating or depreciating value early in life will help them make wise decisions later on—your expertise will impact their future decisions.
At least one relative outside your marriage should know the locations of key documents, codes, or keys to safes and safety deposit boxes. At some point, trusts, estate plans, and long-term health care wishes are revealed. If you use an investment planner, allow the children to attend a meeting and get to know the advisor.
This is important for you to do with elderly relatives as well because you need to be prepared for the time when they are no longer able to make wise decisions.
Teach Habits Early with a Youth Savings Account
At AdelFi, we believe there’s a responsible way to build financial habits at any age. That’s why we offer youth accounts for every stage of your child’s financial development from pre-school through high school graduation. Your child will learn valuable saving and money management habits while an adult stays in the loop with 24/7 parent monitoring and control over spending limits. It’s the perfect way to teach valuable real-world lessons that prepare them for adulthood.
This article has been adapted for use by AdelFi for the benefit of its audience and in exclusive partnership with Crown Financial Ministries. This article was originally written by Chuck Bentley, CEO of Crown Financial Ministries and was posted to Crown.org. To learn more about Crown’s mission, go to crown.org.
