Over the last few weeks I’ve read several articles which stress the importance of talking about money at home. I believe that money talks should be an open discussion which includes the entire family. Some people are of the opinion that money should be discussed among adults only. I disagree.
Where should you start? How do you go about talking about money? Not knowing where to start is sometimes what causes money conversations to be overlooked and dismissed. I found this article which gave the following tips on how to get started:
- Schedule regular money talks – Talking about money regularly allows you to be on top of what is going on with your finances.
- Don’t limit your discussion to saving and spending – You can talk about your dreams, goals and anything that affects your views on money. How do you view money now? What do you want to teach your children about money?
- Share your failures – Nobody is perfect, and we all would have made some money mistakes at some point in time. Share your mistakes and what steps you are taking to ensure that you do not make them again.
- Track, then talk – Creating a family budget can be extremely helpful with tracking your money. If you do not have a budget, start by making a record of everything that you’ve spent. The next step is to discuss what items on the list you could have done without and go from there.
- Be kind – The blame game is easy to play out when talking about money. He did or she did it will not help the situation. Use this opportunity to see what you should avoid in the future.
- Get help if you need it – If you realise that you are a bit too deep in trouble, consult with a financial advisor. I honestly believe that all money issues can be solved.
Children should be involved in money discussions too. I’m not saying that you should tell your children that your mortgage is x or y. I’m talking about explaining how money is spent in the household and the steps that you’re taking to manage money. This can be a great learning experience for them and can set a basis for them when they get older.