Teaching Kids to Manage Money
This post is sponsored by Chase but content and opinions are mine.
Many moms can identify with the Dr. Seuss character Bartholomew Cubbins, who found himself wearing hat after hat until there were 500. Teacher, chef, nurse, and entrepreneur are some of the most frequent toppers, but today’s Mom is often wearing a ten-gallon Chief Financial Officer lid too. How does it look?
Growing up, I lived in a single parent household. We were comfortable, but not extravagant. The only money particular I was privy to was Dad’s long-term savings goal of providing for my university education.
I knew he was faithfully saving for my future but I didn’t know details.
By the time I graduated from university, I understood the importance of budgets and financial planning. I became a workaholic and tried to live within my means.
When Mike and I married, and had Sam, one of the first things we did was begin saving for Sam’s university education. It was non-negotiable in my mind. I experienced Dad’s wisdom on that and recognized the impact of not facing a mountain of debt as soon as I walked into the “real” world.
I’ve felt like Mike and I have been good financial stewards but a recent exchange with Sam made me realize I could be doing more to help Sam understand the concept of money.
We were at an outlet mall and Sam asked to get on a kid ride but I said I didn’t have any money on me. His response: “Just use your card. It pays for everything.”
I do rely on my debit card, and that’s what Sam sees me using. But our conversation was a wake-up call. Sam doesn’t often see how money is exchanged, or understand how much it takes to buy things, and I know now that’s something I have to remedy. Although I don’t want Sam to be unduly concerned about finances at such a young age, his future depends on understanding money matters.
I just read some interesting statistics from a recent Chase Generational Money Talks Study. It affirmed that working women have become the breadwinners and household CFOs.
However, there’s a generational difference in perception of money matters. Seventy-eight percent of Millennial women agree they’re able to make good financial decisions even when it’s new to them, compared to 71% of Gen X and 67% of Boomer women.
As far as investments, 67% of Millennial women agree they’re comfortable investing in products with long term returns but only 57% Gen X women and 53% of Boomer women are comfortable.
And even though 71% of Millennials claim to be the person responsible for financial decisions, 75% of Millennials still have money-related conflicts with their spouses. Compare that with 53% of Baby Boomers claiming to be the person responsible for financial decisions and 62% have money-related spousal conflicts.
My take-away? Financial management for couples and parents has evolved, but we are still coming to terms for living with today even while we plan for the future. And it’s not always easy.
Visit Chase.com/TheTalk for more financial guidance on managing everyday finances. It might be what you need to look great in that ten-gallon CFO hat.