According to research done in Britain, teaching your kids about money could also help improve your finances. Parents who took a two-hour course designed to encourage them to talk to their children about money and money management improved their finances a year after they’d taken the course. A control group who took a course on parenting that didn’t not cover financial topics did not report improvement:
“Researchers believe that the unexpected benefit to parents’ own finances is likely to result from the course encouraging parents to be more open about household spending and debt.”
More parents gave their children spending money after taking the course. Previous research done by the same organization found that children tend to be better with managing money when they are given money on a regular basis
Even if you don’t decide to give your children money on a regular basis, there is a lot you can do to increase their financial literacy such as having your kids help with making shopping lists or making the family budget, role-playing what happens when you go to a store to make a purchase, and talking regularly about money. Parents are encouraged to remember that they don’t need to be experts to teach their children about money; they just need tp be willing to discuss it (as opposed to never talking about it).
And the holiday season is a good time to talk about money. If you don’t discuss it openly but you shop and perhaps even express remorse later when the bills arrive, your children are paying attention. Why not talk to them openly about money and spending? It is no secret that teachers learn as they instruct. And if you are concerned that your curious children will ask questions that will make you uncomfortable, consider just why that is the case. Again, they are observing you no matter what so letting your children help with some of the financial planning could result in a better financial outlook.