Talking about money can be taboo for some families but it doesn’t have to be. In fact, it shouldn’t be, so take the time to periodically discuss your family’s financial situation with one another.
Both spouses or parents should be fully informed of the family financial situation. Regular conversations can keep them familiar and up-to-date with spending habits, budgets, financial accounts, and debts. It’s also an opportunity to establish financial goals and develop plans to achieve them. They should also discuss what to share (and how to share) with children.
Discussing finances with children can help set a strong foundation for financial responsibility. It’s important that they understand money “doesn’t grow on trees” and grasp the value of a dollar at a young age. And while they don’t need to know how much debt the family might be in or how much money is socked away in savings, giving them a general financial overview can help them process and understand the financial decisions that affect them.
Do you discuss finances with your family? If not, what are the barriers? If you do, what has the experience been like? How have the discussions helped (if at all)?