How to Talk to your Family about Finances
Although some would beg to differ, the sometimes intimidating, often misunderstood “F" word – finance – isn't a bad word. Talking about personal finances can be a touchy subject and if discussing it with your partner, parents or kids is something that you're not quite sure how to approach, you may end up avoiding the conversation all together. Here are some tips to help you have those important conversations about personal finance with the most important people in your life.
Talking to your kids
Teaching kids about money from a young age can help them to develop skills and confidence to make smart decisions about their finances when they're older. Money management lessons for children revolve around five basic concepts.
1. Receiving money from allowances and small jobs around the house or in the neighborhood.
2. Spending. Learning the difference between needs and wants and understanding the relationship between price and quality.
3. Starting the habit of setting aside some money each time they get it.
4. Understanding how a loan and repayment with interest works.
5. Giving back in the community and finding ways to share their time as well as their money.
For more ideas about how you can start the conversation with your family, talk to a Manulife Advisor.