Today, women are helping to shape new conversations around the dinner table, and one of them is about money. According to a Women & Co. study, 91 percent of women are talking about finances with their family; two-thirds believe that talking about money is much more socially acceptable than it was before the recession. And women are feeling a responsibility to pass along lessons learned in the economic downturn to others, particularly their children. 86 percent of mothers are sharing their insights with their children, family, friends, and colleagues.
To help mothers continue to be an inspiration to the next generation, Lisa Caputo, Founder, Chairman and CEO of Women & Co., and Linda Descano, CFA®, President of Women & Co., offer the following tips to instill financial values to children:
Start now. It’s never too early or too late to help your children develop a strong foundation of financial knowledge. Use examples or activities that match their stage of development, not necessarily their age in years.
Use everyday activities as teaching tools. Talking about money doesn’t require a formal discussion around the table. Trips to the grocery store can teach children how to plan purchases in advance and make price comparisons. The library helps introduce the concept of borrowing. Classic board games can be a springboard for basic lessons in real estate, taxes, and general finance.
Consider an allowance. An allowance can be a good way to teach the various aspects of money. For example, a three-part allowance designates a portion to savings, another to giving and the rest to spending. This is a great way to help children gain experience with money and with philanthropy.
Lead by example. Take children along when you save, donate, and invest. For example, open a savings account for them at your local bank and take them with you to make deposits.
Show them the results. Start a family fund that will be put toward a common goal such as a vacation, gift, or a specific charity that family members would like to support. Let the whole family experience the positive results of saving and budgeting.
Don’t say things are OK when they are not. Children can sense when something isn’t right. Take time to explain issues to your children in an age appropriate way.
Don’t hide your money mistakes. Use it as an opportunity to teach your children how to fix that mistake.
For more information, visit womenandco.com. Women & Co. is a vehicle for insightful women to build their financial knowledge, bolster their confidence, and create financial strategies that will help them achieve their goals. Through access to education, resources, and a community of financially minded women, Women & Co. is the place where wisdom, wealth, and women meet.