I have to admit, I don’t have a clue as to what we should say.
Here’s what we have been saying and doing. My husband will often tell our kids that we need more money. They have the classic kids response of ‘Well, go to the bank and buy more money.’ We also might tell them that we can’t buy something because it costs too much, or maybe that we are saving up for it. We talk about going to work to earn money, so that we can buy things or live in our house.
What we don’t do is give our kids an allowance. I wonder if we should. I would like to have them start to save money, and buy things of their own. I would also like to save money for them, which we never have done so far.
I’m not sure about how much we should tell them. Should parents talk to kids about being in debt and not having enough money to pay for things? Should they talk about their financial goals for the future? About frugality and the current recession? Or should the kids stay blissfully unaware of any financial turmoil?
What’s your opinion? How much do you talk to your children about money, frugality and your finances? What did your parents say to you?