Teach Your Kids About Money with the Bank of Mom and Dad

Teach Your Kids About Money with the Bank of Mom and Dad

By The Physician Philosopher  12-12-20

Editor: Have you taught about money yet? It can be a bit confusing where to start. Leif gives you all of the steps that you need to know to teach your kids what they need to know. Keep on reading to learn how to show your kids the ways of money. This post was originally published on Physician on FIRE.

Teach Your Kids About Money with the Bank of Mom and Dad

How do you teach your kids about money?

It’s a great question. We all want the best for our children, and that includes not making the same money mistakes we’ve made in our own lives.   I don’t have all the answers, but I feel we’re doing a few things right. We’ve been parents for eleven years now, and we’ve got about nine years left with at least one child at home with us. I can’t believe these years are more than halfway over.  I’d like to share some of the tactics we’ve used to teach our kids about money, and that includes “The Bank of Mom and Dad.” We use the term in a different way than most, and it’s been an effective tool in our household.

Let’s Talk About Sex Money, Baby!

What are the two most taboo topics at the family dinner table? Sex and money, right?

There really does need to be some discussion of both, but the birds and the bees talk is probably best reserved for a more private setting in which the details would not result in a loss of appetite and an untouched dinner plate.

Money, on the other hand, should be a part of everyday conversation, including at the dinner table. Dollars and cents shouldn’t dominate the conversation — you don’t want money to be a primary family focus — but as money is a part of everyday life, it should not be ignored.

Talk about earning money.

Your kids should know that you work hard so that you can live a good life both now and later. It was not unusual for me to be paged away from the dinner table for the first of several after-clinic surgical add-ons when I was on call.

While I didn’t like having to leave, we made sure our kids understood that I was well compensated for being at the hospital’s beck and call for anywhere from 24 to 120 hours at a time.

When your kids are old enough to have some concept of the value of a dollar, consider discussing specifics in terms of hourly pay or annual salary. If you’re worried about them telling their friends, and their friends telling their parents, talk in general terms. You can look up the average salary of your profession with them on a site that anyone can access like glass door, for example.

Talk about spending money.

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