Talking about money choices, big and small

As you talk to your kids about money, when you talk to them is less important than how you talk to them. When you take into consideration where your children are in their financial development, you can talk to them about important events and build skills they’ll use later in life.

Some topics may be sensitive for your family. Keep in mind that children absorb much more than the words you say—they’re aware of your moods and attitudes too. Start a conversation when you sense it can be productive and comfortable.

Common family events can lead to money talks

Here are some typical family occassions that might lead you to important money talks.

Getting a pet

Having a pet join your household can feed interest in talking about money.

Getting a pet can be exciting for the whole family—and a whole new set of responsibilities. Here are tips to help you adapt the conversation so that your preschooler, preteen, or teenager gains money skills from the conversation that can help them later.

In addition to what you need to do to care for your new pet, you need to prepare for any changes in your family’s money situation. Here are a few tips on having a successful conversation.

Idea: Comparison shopping

Enlist your teenager’s research skills. Pet food comes in many varieties, and your teenager can help you gather information from stores or shopping websites and compare them in terms of nutrition, cost, and other factors. Your teen can research and choose a vet, or help estimate the cost of food and care for a pet like yours over time.

Idea: Career planning

See if your teenager is interested in the jobs related to the pet care industry—animal shelters, pet stores, veterinarians, training, day care, animal talent agencies—the list is long. Even if your teenager isn’t drawn to these jobs, it can be good practice in researching different ways people prepare for and develop careers.

Moving to a new home

Moving out of your old home and into a new one can open the door to a money talk.

Moving to a new home could affect your family in many ways—including your money situation. Here are tips to help you adapt the conversation so that your preschooler, preteen, or teenager gains money skills from the conversation that can help them later.

If you are moving to a new place, it might be necessary to talk to your children about what it means, or even if it’s not necessary it might be a good opportunity.

Idea: Comparison shopping

Enlist your teenager in comparing options for packing and moving your furniture and other items. They can start by setting out criteria like experience, availability, trust, and cost, and then gather the information for three different options.

Idea: Managing day-to-day choices

Talk about the process as much as you feel comfortable, like applying for a mortgage or filling out a rental application. Ask them to look into requirements for changing your address and car information (post office, license plates, registration, and driver’s license).

Buying a car

Getting new transportation can drive a whole new money conversation.

Buying a car is a major purchase. Here are tips to help you adapt the conversation so that your preschooler, preteen, or teenager gains money skills from the conversation that can help them later.

With most big purchases, there is an emotional side and a rational side. You might be excited about the purchase, and still need to consider the financial side of things carefully and calmly.

Idea: Comparison shopping

Comparing auto features and options is one step in shopping for a new car, and also can introduce an opportunity to talk about shopping for payment and loan options. Our auto loan worksheet helps you comparison shop for loan terms and guides you through the various options.

You can start by gathering readily available numbers—you can use the worksheet to compare cars that your teen is interested in or advertisements your teen has seen. If you prefer, you can set up the worksheet with hypothetical prices, interest rates, and car features. You can even use the worksheet to illustrate the difference between borrowing money to buy a car and paying the full price in cash.

Paying bills

Taking care of household expenses can spur a money management conversation.

Paying bills might be a chore for you, or something you try to minimize. Here are tips to help you adapt the conversation so that your preschooler, preteen, or teenager gains money skills from the conversation that can help them later.

Paying bills fits into your everyday money management, and it’s an important part of financial adulthood that eventually your children need to understand and handle.

Idea: Managing money

Some people choose to pay bills automatically, deducted from their accounts. This helps make sure they’re paid on time. Talk about the pros and cons of other ways to pay bills, like paying in person, paying by mail with a check, and making payments by phone or online.

Idea: Building habits

Talk about why you pay bills the way you do, and why your system works for you. This helps your teen understand the importance of having a system and how to form a healthy money habit. Your teen might already be responsible for a recurring bill—maybe your teen pays for a cell phone or car insurance—and you can help them set up a system to manage payments.

Reference and more ideas:

Talking about money choices. (n.d.). Consumer Financial Protection Bureau. https://www.consumerfinance.gov/consumer-tools/money-as-you-grow/talking-about-financial-decisions/