The Theme This Month At enableMe is Talking to Your Kids About Money

Talking about money is a societal taboo; we don’t talk about how much we earn or how much we spend and we don’t like to burden our kids with such discussions. However, research shows that at as young as three, kids start noticing the difference between what they have and what other kids have, particularly if they perceive it to be better than their own.

So we need to be starting conversations with our kids before they start drawing their own conclusions as to why that might be. Money underpins so much of life, so ignorance is never bliss when it comes to money - that only leads to financial stress and dumb decisions in later life.  Just like you teach your kids the basics of which foods are good for them, you need to teach them the basics of money. Of course, you need to make sure you’re a good example, too - which is what many parents might fear. They need their own house in order to make sure they’re giving their kids the right messages. 

Hannah McQueen, the founder of enableMe recently told the NZ Herald, “Kiwi parents are setting their children up to fail by keeping them in the dark about money”, and has launched a book called Pocket Money to Property - How to create financially independent kids. McQueen explained what drove her to write the book - clients who were holding back their own financial future by still supporting adult children, and worry about a sense of entitlement in her own children.

McQueen continued,  “Today's parenting techniques are setting children up to fail by keeping them in the childhood phase for longer and not giving them practical experience handling their own money”, and she goes on to say that parents should begin talking about money with children as young as five and introduce pocket money by the age of nine to teach them about the value of working.

Then by the age of 12 or 13 parents should be giving their children hands on learning by giving them control over their clothing or entertainment budget.

“We want them to have a successful adulthood and a lot of kids are not prepared to be successful adults." McQueen says teens should get a job and be told that mum and dad won't be there to support them forever. "I think there has to be an expectation about when it is time to be an adult."

enableMe’s financial personal trainers are highly trained, professional financial advisers, who can help you identify your financial goals, create a plan to make them happen and keep you on track to achieving success – to make sure you’re setting your kids the right example. For more information on financial planning, budget advisors and financial planning NZ please go to http://enableme.co.nz .