TACKLING TOUGH MONEY CONVERSATIONS WITH YOUR CHILDREN BY MATTHEW CURTIS, CHARTERED FINANCIAL PLANNER, THE FRY GROUP
Talking about money with your children can be Building good habits in children challenging, regardless of their age. What to discuss, when is the best time to do it, and will they even pay Many children have plenty of opportunity to learn about attention, are all valid concerns. In this piece, Matthew maths at school and college. But financial literacy skills Curtis, Director of The Fry Group Hong Kong looks at – how to build savings, managing debt/credit, how to approach talking to your children about money understanding investment options, setting up a when they are younger, as they become adults, or pension and weighing up mortgages – are rarely even when the time has come to explain your covered. So, tackling some of the financial necessities in life can fall to parents, or fall by the wayside. inheritance wishes or ask for help yourself. In times gone by the idea of openly discussing money was often frowned upon – perhaps a classic case of British reserve. Sadly the legacy of this is all too clear with three-quarters of Brits struggling with financial literacy and 90 percent of families losing inherited wealth by the time it passes to the third generation. In recent years there’s been a growing sense of the importance of developing good financial literacy in younger generations, and the role that parents play. And at the other end of the spectrum, it’s clear that being open and upfront about your own financial position, and plans for your wealth, can help to reduce disputes over inheritance. So with all that in mind, what are the financial
Childhood offers a great opportunity to build some of these important life skills. Younger children can grasp the basics pretty quickly with the concept of earning pocket money for household tasks which they can choose how to spend (on a small toy) or save (for a bigger one). Here savings jars can offer a visual way to see growing money over time. Another approach could be to explore Practical Money Skills by VISA which is a website that aims to provide some first steps into financial education with information, games and guides aimed at children. It can be a great starting point and offers some good opportunities for children to play to reinforce their skills. As children get older, there’s the opportunity to involve them more in household budget decisions, holiday plans and how you’re saving and investing too.
conversations it makes sense to have with your children? 30
