Talking money with your Gen Z kids
(NC) As a parent, you can help set your child on the right financial path with the knowledge they need to make well-informed financial decisions. Having these kinds of conversations is especially important right now, when the pandemic is showcasing the importance of saving and budgeting in real time.
Here are some tips to start a dialogue and keep the conversation going:
- Understand your influence. Generation Z has never known a time when they couldn’t simply jump online and instantly find the answer to any question. As such, they’re very open to learning on their own. But they also place considerable value on expert guidance and personalized help. This is especially the case when it comes to financial education, and parents are one of the first places Gen Z’ers turn to for financial advice. This means they’ll take what you say to heart, and may even ask questions about your own money choices. Be prepared and ready to talk about your own experiences and mistakes.
- Focus on goals, not figures. While being open and honest is essential, it’s important to not let your kids feel stressed about money at a young age and develop negative associations with it. Talking about specific dollar amounts in the family budget might lead to this, so concentrate your discussions on goals and values, like the importance of setting and maintaining a budget, saving for a rainy day or their education, and paying down debt. You can use examples within family life, like how you may give up a night at the movies to help fund a weekend vacation.
- Emphasize lifelong learning. “To achieve long-term financial success, increasing your personal financial knowledge is key so that you can better manage your own affairs,” explains Melonie Dixon, vice president of deposits ay Oaken Financial. “At Oaken Financial, we’re committed to helping Canadians improve their financial literacy and have experts who are always there to help.”