Why we find it hard to be straight with our kids about money

Financial literacy is as important to teach our children as any other kind of literacy, and yet many of us shy away from candid conversations about money with our children. In so doing, we miss an opportunity to instil family values and to cultivate positive traits such as generosity, patience and perseverance.

When I lived in California 10 years ago and had young children, I was pleased to see many teenagers in my neighbourhood who could babysit. Talking to their parents, however, I was told they were too busy and they didn't need the money. I was astounded. Babysitting was my route to financial autonomy when I was in high school. I babysat for a dozen different families who paid me about a dollar an hour. I saved my money and thought through my purchases carefully, always hesitant to part with that hard-earned cash.

Wanting to impart the same lessons to my own children, I attempted to introduce an elaborate plan to teach my firstborn about money. I gave him US$3 pocket money each week and insisted that he put one of each in three separate envelopes labelled "spend", "save", and "donate". The problem was, he wanted a toy that cost US$30. At that rate it would take him so long to save enough to buy the toy, he would have lost interest. At that age, was waiting five months really teaching him anything about financial management? I soon abandoned my plan.

Ten years later many great resources exist to guide parents through pocket money strategies that are more successful because they are both practical guides and they help parents initiate conversations about underlying values associated with stewarding wealth. Raising financially aware children is easier and more meaningful today.