- my iParenting
- quick clicks
- article archive
- expert q & a
- community & groups
- research baby names
- prepare a birth plan
- content channels
- ip channel rss feeds
- read birth stories
- read parenting stories
- recommended books
- e-newsletters
- safety recalls
- ip diaries
- ip store
- mom of the month
- dad of the month
- editor's letter
- letters to the editor
From Our Sponsors
- e-newsletters
- Sign up to receive our free weekly e-newsletters
- award-winning products
The iParenting Media Awards program helps parents find the best products for their families.
Family Finances
How Much Should Your Kids Know?
By Gina Roberts-Grey, LCSW
Rising utility and automobile gasoline prices, college tuitions and emergency trips to the veterinarian are just a sampling of issues that put a strain on a family's budget. These expenses and more are causing many families to find themselves needing to periodically revise their budgets.
Our children overhear financial discussions and casual statements spoken about saving for the holidays or a vacation. They see prices on nearly every item in stores and malls and are aware that their parents work. Despite being aware that money is a part of life, many parents question how much financial information they should share with their children.
Whether your family is pinching pennies or fiscally sound, do you know if your child understands the concepts of saving and spending money? How much does your child know – or want to know – about your family's financial footing? Knowing when, where and how to approach financial topics with your children will alleviate your child's confusion, prevent misconceptions and ensure your family is all on the same financial page.
Remember that $100 to a 5-year-old is $100,000 to an adult. If you're experiencing a budget crunch or trying to teach your child fiscal responsibility, offer an explanation that won't cause confusion or stress for your child.
Nancy Woodbury of Valencia, Calif., urges parents to avoid lengthy and confusing lectures. "Substitute dollar values for items when talking to young children," she says. Explaining that it takes the equivalent of three Deluxe Barbie Dolls to purchase one tank of gas helps a child relate to your family's expenditures. Older kids understand that five new CDs can equal one month's telephone bill.
Jim Guiffre of Algonquin, Ill., realized that providing a realistic and honest answer to "Can we go to the movies?" helps young children begin to understand basic concepts of budgets, limits and saving. "My 6-year-old appreciates that we respect him enough to talk to him honestly," he says. Many parents like Guiffre have discovered that answering with "Not today, but we can go when I get paid" honestly answers a child's question without creating the feeling that he's asked a bad question.