Financial Literacy For Families: Teaching Kids Lessons That Stick

Like many of us, I remember times when my parents would say something to me that they thought was important and I would drift away into my imagination, not paying attention to what they would say. Today’s children aren’t any different in that respect, and one could argue it’s worse with the myriad of distractions we all have in front of us. How do you teach them something that will stick with them?

There is no doubt this is a challenge for any parent. But with a few techniques, there are ways for you to deliver lessons that stay with them for the long haul, even when it comes to a concept that may be boring to a child: financial literacy.

Dialogue is a Two-Way Street

When it comes to teaching their kids, many parents have issues with talking at them rather than to them. It’s almost natural; you want to impart a lesson, and, almost subliminally, you picture yourself speaking to a classroom of quiet children.

Do you remember what it was like being on the other side of that conversation when you were a child? It wasn’t pleasant, and oftentimes boring. That’s because you weren’t engaging in dialogue with your parents, but instead being talked at. It could also have seemed to be disciplinary. That’s not the goal.

Children want to be heard, and so when it comes time to talk to them about money, it’s important to make this a conversation between two or more people. Invite them to participate. Ask them questions that lead to more questions. Whether or not you choose to speak to them as if they were adults depends on their age(s) and your parenting style, but talking down to them is not the idea. Be encouraging, and you may learn something yourself.

Where and When

Timing is everything, though, and where and when you have these conversations is also important.

For example, suppose you are on a family vacation and looking in a gift shop at a theme park to buy some souvenirs. Your youngest child comes to you asking about whether or not they can buy something. Is this the right time to have a dialogue about money?

Arguably not. They may be feeling tired from walking all day or too energetic about the rush of emotions they’ve had. In that scenario, wait for a quieter, calmer moment. Someplace you can sit down and relax, and it doesn’t feel forced. For my family, that often meant at dinnertime.

Eat Up and Learn

The concept of a family coming together and eating at the same table has gotten a bit warped over the years. There are so many distractions, including our cell phones and the daily grind, and that leads to quick meals where we sprint off to do the next thing. But if you can resist those temptations and encourage a regular sit-down meal with your family, you will find the perfect moment to have these conversations.

Make it a routine to have at least one meal a day with your family, and remove all of those distractions. Cell phones go in another room or on the kitchen island, the TV is off, and encourage conversation. Then, either when it comes up naturally or an event occurs that prompts the topic, start discussing financial literacy as a group. Begin the dialogue.

At first, this is going to be awkward, and that’s OK. Kids don’t always want to hear these things, as it involves math, and that isn’t the most riveting topic of conversation. But every time you broach the topic, you’ll make a little bit of inroad into their minds. They will remember what you’re talking about and even use it as a reference for future conversations. It’s a process, but it will happen.

Step By Step

Someday, your children will grow up and move away from home. If they don’t have the financial literacy skills they need to survive, they will end up in a bad place, and neither of you wants that.

Instead, take little bites of the apple. Be open to questions, as well as being patient and understanding. It may take a while to settle in, but eventually they’ll get it. When it all clicks together for them, they will realize how powerful a tool financial literacy is, and how they can use it to better their own future families.