How do I make money a safe topic in my home?

Q: Dear Ruchi, I am a new parent and my head is spinning thinking about all that lies ahead for myself and my family; mostly exciting, but partially nerve-wracking. Though my daughter is young, I have already started thinking about how I am going to teach her about money as she grows. Money was always a stressful topic in my household growing up and I don’t want to repeat that same cycle. How do I start planning for these financial conversations as she grows?

A: You are embarking on such an exciting journey and the fact that you are already thinking of these conversations puts you a step ahead. Great job! 

Money conversations can feel tough, especially if money was not a safe topic in your household. Many of us have grown up hearing that discussing finances is "taboo" or "private." But what if I told you that embracing these conversations could actually empower and enrich your family life? Talking about money with your kids can relieve anxiety and pave the way for a brighter future.

Did you know that according to a recent study, 42% of couples in the U.S. have experienced disagreements about money, and 27% of them even admit that these disputes happen regularly*? It's inevitable that we will all face financial challenges, but it's how we communicate about them that truly matters. Remember, children are perceptive – they can sense when something is bothering you. So, eliminating stress around money isn't just beneficial for you, but for your entire family's well-being.

When kids feel comfortable discussing money matters, they become more aware and responsible with their finances as they grow. 

Here are a few ways to start thinking about these conversations…

• Communicate openly and honestly.

• Be open about your financial situation in an age-appropriate manner. Avoid burdening them with excessive information and instead focus on diving deeper into their thoughts.

• Approach conversations with a positive mindset.

• Instead of focusing on money frustrations, use these moments as an opportunity for education and awareness. Teach your kids about saving, budgeting, and setting financial goals. 

• Encourage questions and curiosity.

• Kids are naturally curious, so fostering an environment where they can freely ask questions without judgment is important!

You’ve got this!

Here’s to your prosperity!

-Ruchi

For more family-related wallet wellness resources check out Guardian and our recent collaboration over on @watchherprosper!

*Based on a 2023 Orion study