The short answer: the hard way.
T. Rowe Price recently released a study on parents, kids, and money. Parents want kids to learn about money by making mistakes, especially with small amounts of cash before they become adults and have large amounts of cash. Meanwhile, kids don’t think that their parents do a great job teaching them about money.
So they learn from their friends at school, the same way they learn about sex and drugs. Right?
It’s hard. Kids need a combination of allowance money that they can use as a learning tool (which includes making mistakes with it), jobs so that they can see the relationship between work and money, and parents who use money in a way that they can model.
If you’re not as good with money as you would like to be, don’t fret. This can be a family affair!
