Talking About Money In The Family

Image from bainesandernst

Are you discussing money with the family? Are your parents transparent with money matters to the kids? As an adult, do you talk about your finances to your parents? Raise the hands of those whose answers are yes. I see quite a few hands. Yes I have psychic ability my friend and I can count the number. That’s our little secret, ok?

Family is considered the smallest unit of the society. It is where we impact and shape lives. Who we are is reflected of what family we have. It is with this regard that this is considered one important core. Apart from family issues and family plans, it is also important that every family must be talking about money! Yes money. However, this is one of the most difficult topics to deal with. I bet you would not even tell your parents how much you are earning. Plus, your parents in turn will also not tell how much they are earning. Money and finances is the most taboo and fearful subject that we can encounter. How much more in the premise of our family. Even more, our parents as much as possible would want to shield us with this one. They would want after all for us to live a better and stress free life. We often tag our parents as strong individuals and tough. They are our support, our shield and our fortress. And talking about money makes them open, prone and fragile.

However, this is something that the family must discuss. Money matters are something that must be transparent so every member of the family would understand. With such understanding, other members of the family would be able to help and contribute.

Here’s how you can start.

Set a date and time

The first thing every parent must do in order to jumpstart the money conversation is to set a date and time. Require every member of the family to be present. You may hold it during the weekend or during a meal like dinner.

Be open and transparent

This is one fear of many parents. They don’t want their children to know their problem all the more about money. However, let them understand what financial situation you are in. Is the family in huge debt? Are there things that need to be cut off since the family is striving for finances? Knowing what the situation is, your children would surely understand why this will be done. They in turn would also cooperate.

Discuss financial goal

It is also important to tell the family the financial goal. What does the family would want to achieve in the long run? Do you want to own a house instead of renting one? Would the family want to get out of debt before the year ends? That financial goal will then be the family’s inspiration to be frugal and to be wise in money spending. And they will know where the money would go with all these sacrifices.

Involving money decisions

Your kids regardless of age must also help to decide on family money decisions. Including them in such an important undertaking would give them that sense of responsibility. It is also a good training ground for them on how they will handle their own money in the future. Consider their suggestions and their input. The more heads working on a problem, the better the result will be.

Let money be an open discussion within the family. Let the entire member be responsible when it comes to finances. Let them appreciate what money is so they would not squander it. Remember, families shaped us. So let us shape the kids to be financially smarter and financially wiser.

P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 4 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.