economy
How to help kids form healthy relationships with money: They 'end up in much better financial shape' as adults, psychologist says
Amid rising costs and a tighter economic climate, more parents are teaching their kids financial literacy lessons that could serve them well later in life.
TL;DR
- 64% of parents surveyed reported that recent financial challenges led them to be more transparent with their children about finances.
- 66% of parents are saying 'no' to purchase requests more often and explaining their reasoning.
- Early financial literacy education, starting as young as age 5, is linked to healthier adult relationships with money.
- Parents are encouraged to explain spending choices, saving goals, and budgeting to their children.
- Practical lessons like grocery shopping or discussing utility bills help teach kids about household costs.
- Conversations about money should be age-appropriate to avoid causing undue stress or anxiety in children.