Expert: Parents need to talk to their kids about money

Expert: Parents need to talk to their kids about money
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Most parents regularly talk to their kids about money issues – and that’s good.

It’s what they’re talking about that concerns T. Rowe Price senior financial planner Stuart Ritter.

"These conversations are focused almost exclusively on short-term goals, such as back-to-school shopping or family vacations," he says.

Ritter says kids and parents aren’t dealing with long-term family goals, such as saving for college.

"One of the things kids need to learn is to achieve those longer-term goals you need to be making decisions today that set money aside for them," he says.

A surprising finding: 14 percent of the parents stated they discourage their kids from talking about money.

Ritter, a father of three young children, believes it’s critical to explain how the financial world works.

"Recognize that your kids are learning about money whether you’re talking about it or not," he says. "And they’re likely to come away with a lot of misconceptions and incorrect conclusions without the input and guidance that a parent can provide."

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More Info:

Survey: Parents are bad at talking to kids about money