Something’s in the air and it’s not just the silent alarm of a much-needed diaper change. While you and your other half grapple with who’s taking the night shift and who gets some extra shut-eye, a conversation about money will feel like your last priority.
Nevertheless, the sooner our kids are taught the basics of money, the sooner they’ll become financially literate.
Some predict that Generation Alpha (born in 2010–2024) will be the most formally educated, tech-savvy and wealthiest generation in history. However, the lifelong lesson of money can’t be downloaded as an app and absorbed in an instant. Instead, real life teachable moments can be applied to the all-important financial literacy conversation.
And, just as critical as the discussion with your children is, you and your partner need to be on the same page. Chartered Professional Accountants Canada (CPA Canada) recommends some areas to consider when teaching your kids about money:
Partners in finance: While parents don’t always see eye to eye, money is a conversation that requires clear communication and compatibility before you talk to your child.
ABCs and 123s: Start the conversation with your kids early. It’s never too soon to show them the value of dollars.
Make it relatable: Use real life ‘teachable’ moments to kickstart lessons in financial education. With assistance, letting your child pay at the grocery store gives them confidence with transactions.
Pennies to profit: Teach your kids the long game. By providing small allowances and exploring spending goals, your kids will learn from an early age the importance of budgeting.
Continue the conversation: Financial lessons won’t be digested in a one-time talk. Keep checking in with your kids and encourage them to learn.
It’s never too early to start implementing money lessons at home. CPA Canada has a range of tips and resources to help guide the money conversation with your future financial whiz kid. Download CPA Canada’s free financial literacy workshops or a copy of its Raising Money Smart Kids book at cpacanada.ca.