Opinion | Talking to kids about money | Paul Siderovski

FAMILY VALUE: Talking to your children about money has many rewards.

FAMILY VALUE: Talking to your children about money has many rewards.

Have you wondered how people who have accumulated large amounts of wealth talk to their kids about money? And what do you say to your son or daughter when they ask you how much you earn?

Even if you do not have buckets of cash it is important to have these conversations about money. It is often so tied to the values that already exist in your family. It helps to be open and honest; to see this as an opportunity to guide them and help them foster a healthy relationship with money – especially family money they may be entitled to one day.

It is also a chance to talk about hard work, sacrifice and showing up as caring, responsible human beings. The benefits that come with wealth (luxury travel, nice homes) can actually be inspiring to children of humble parents. Lead by example. Don’t be afraid to explain that the benefit of hard work is the life you are providing. I certainly have those conversations. I work hard and will continue to forever. I want my kids to not be scared of putting in the hard yards and to see the correlation of a good life and hard work.

Life coach John Christianson gives these tips; be transparent about your wealth, show that work is important, and foster a stewardship mindset. The latter basically means teaching them that money is a tool, not a toy. That money can not only buy material things but, by having it, they can effect real change in the world.

Money conversations need to be targeted to age and levels of understanding. Christianson suggests starting with conversations about savings and budgets and then progressing to bigger concepts such as building wealth and entrepreneurialism. By connecting these talks about money to family values, you can set your kids up to have a strong and healthy attitude to money and put them on the path to a rewarding and secure future.

Paul Siderovski, is managing director of SiDCOR Chartered Accountants

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