WEALTH TALKING TO KIDS (OR GRANDKIDS) ABOUT MONEY | MARION HENSELWOOD With cash, debt and personal finances dominating so many conversations today, it may be logical to assume financial education is something parents are passing on to their children. However, a new survey shows only one-third of Canadian kids aged between 10 and 17 regularly discuss money and finances with their parents. That means now is a terrific opportunity for parents (or grandparents) to start teaching their kids about cash. Most parents manage to talk to their kids about the birds and the bees, but for some reason we’re more reluctant to discuss dollars and cents. Like anything, a positive financial future is based on knowledge and creating good habits in our formative years. Given the lingering economic uncertainty and the record debt levels Canadians are currently carrying, now, more than ever before, parents should be providing sound financial guidance. Marion Henselwood is a branch manager at Valley First’s Guisachan branch in Kelowna.
“Good financial advice is like gold,” says Marion Henselwood, of Valley First. “When talking financial literacy, I turn to the old saying ‘watch the pennies and the dollars will look after themselves.’ By understanding your smallest earnings and expenses you can work up to the more complex financial issues you will face in your life.” Henselwood believes there are a number of reasons parents may avoid talking about finances and financial literacy with their children. Among them is the perception that money is a taboo topic or that parents simply don’t have the knowledge to pass on. “We learn at an early age that talking about money is somewhat socially unacceptable,” says Henselwood. “I think some of that mindset is present in most households. Beyond this, the reality is, many adults don’t have the necessary financial knowledge to pass on to their children. Survey results also show kids aren’t averse to furthering their financial knowledge; more than 30 percent would like to talk more openly about their family’s finances.” “By talking openly about finances, parents can eliminate a lot of the mystery associated with money,” says Henselwood. “It’s good for kids to know money doesn’t grow on trees, and once parents have started that discussion, it becomes easier for them to provide education on healthy financial habits.”
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