Michele Shrem
This month we are discussing whether families should discuss finances with their children. Should the kids know about financial struggles that are going on in the household? When I was growing up, money was always a hushed subject. But, these days should our children still be in the dark? Should families be open about their finances? Should children be told about family financial struggles? Let’s see what our community members have to say.
Sarah
When I was growing up we never knew anything about finances or any struggles. Everything was discussed behind closed doors. And, it was the same with other topics such as religion and politics. There was a sealed lid on family finances that was not opened until much later on, maybe when I was a teenager. I did learn how to handle a bank account through my mom. She took me to the bank to open an account when I started to babysit. I was lucky that she showed me how to save from a young age. Now, instead of saving for a special toy, I can save for a nice vacation!
Anonymous
As a Certified Financial Planner, I feel that shielding children from money discussions is a form of educational neglect. You can’t expect a young adult to have a credit card or to sign a lease if they have never even looked at a utility bill. They will have no conception of money and how to use it properly. I think it is a good idea to discuss finances early and often. You can start with the concept of earning, saving, spending, and giving, even at a young age. If a six year old does a household chore, you can give them a quarter to put into a piggy bank. Then, when it starts to add up, you can take them to a store to spend a little of it. You can also have a home tzedakah box to show them how to give, and even bring them to the organization to deliver the box. I also believe that children should know about struggles going on in a household. There is no need to make them feel nervous, but they can become more resilient. If you can’t go on a vacation one year, you can tell them why. You can suggest a weekend trip instead, and let them know that in the future, they will hopefully go on a larger vacation. When children are in the dark, they can imagine worse-case scenarios. If they know, they may even be able to help by assisting in the home, or not asking for high-priced gadgets.
Jojo
I am very cautious about treating children like adults. I In the current world, that is probably a very old-fashioned thing to say. I feel that discussions should be age-appropriate. I would not want my child to feel anxious. A home should be a very safe and supportive place for them. I advise against sharing serious financial struggles like a job loss for instance, unless they are at least in their teens. I don’t think that children younger than that can understand that problems are solvable, and that the problem may not be permanent. Financial instability can feel like a threat to a child’s safety.
Kelly
When I was growing up, money was very tight, and I knew that my parents struggled through the years. Because they kept me in the loop, I do pretty well for myself now, and I credit my parents for teaching me these skills. Now, I passed that down to my kids so they know the costs of things. I want them to be prepared and understand the value of a dollar. To me, total transparency is the way to go. If the water gets shut off, they should know why, because it builds hunger and a drive to never be in that position themselves.
Mrs. E
I don’t think that children should ever know about family financial hardships. I want my children to play and learn, while my husband and I share the burden. I would never even think of it as a topic for the dinner table. If my kids think that I’m scared, that will be the end of their childhood. My husband and I will hold onto the stress. As adults, I feel that we can handle stress better. There is plenty of time for them to stress about things later on in life.
Diane
As a teacher of middle school students, I find that many of them have not had any discussions about finances at home. Kids actually do need help to understand why they have different things than their peers. There is a middle ground approach. You don’t need to tell them if you are broke, but you can tell them that certain things will take priority for a little while. This way, they can understand some of what is going on and understand the concept of a budget, without feeling inferior to their classmates and friends.
Mike
I like to have family meetings once in a while in order to talk about several things with my kids, including chores, issues they are having inside and outside of my home, and, of course, finances. I want my kids to see where the money goes. I try to be honest with them. For instance, if we overspent on groceries, and they can’t go to the movies. Then they can see the math for themselves. They mystery of why I said “no” is then understood with logic.
Lisa
I knew growing up that my parents struggled. I could feel the tension in the air. My parents did not talk about it, and my imagination made it ten times worse. I think families should be in a situation together. As a kid left to guessing, I can tell you that it made me anxious and scared. Years later I found out that it was not as bad as I had thought. If I had known, all those years of worrying could have been avoided for me.
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Ultimately, the line between helpful and harmful financial transparency is drawn at stability. Money discussions are helpful when they serve as a lesson for future independence. They become harmful when they serve to vent parental stress or become a source of childhood fear. By treating money as a neutral tool rather than a secret shame, families can equip the next generation with something money can’t buy: the wisdom to manage it well.
Michele