"Make Your Kid a Money Genius (Even If You're Not): A Parents' Guide for Kids 3 to 23" author Beth Kobliner came by Business Insider to talk about how parents should talk to their kids about money. Following is a transcript of the video.
Parents are so nervous that they don't know enough. They're afraid that they're going to mess up their kids. The important thing is you, as the grown up, need to take charge of this.
I think the biggest mistake is expressing their anxiety about it. Like "Ah! I'm not good at this!" Or, "Oh I blew my cash advance when I was 23 years old and went to Paris!" Which is what a lot of my friends did. And I think that although we may have money baggage, I've met so many people who say, "You know, I'm really bad at money, cause my parents were really bad at money." Or other people say "I'm really bad at money cause my parents were too good with money, and they were so careful and frugal and now I want to spend it myself."
The point is that it doesn't matter what your psychology of money is, in the sense that you wanna just help your kids understand how to stay out of debt. Not to get into credit card debt or how to save money for the future, or even invest.
It is simpler than people think, but you don't want to express all that fear. I remember somebody once told me when my son was little to pretend to love bugs because he was really into science, and I was like "Ehh!" And he would love to dig in the dirt. And I realised "OK. That makes sense." Pretend, or at least be cool with it, so that they will know that it's something that you are sharing with them and they will pick it up too.