How to Answer Smart if Your Child Asks You about Money

We all know that children are naturally curious. Since they are born like that, they often throw surprising questions to adults. One topic that most adults or parents struggle to answer is when their child asks about money. As a parent, there’s no need to tighten your lips if your child wants to know more about money. You should take that as an opportunity to teach them about it properly.

So, we are here to help you with your answer once your child asks you questions about family finances. In this article, we have listed some of the most common questions that children ask and how you can answer them smart and correctly.

Let’s get to it!

Question #1: Why Can’t We Just Go to the ATM to Get Some Money?

You may find this question funny once your child asks you this, but you should take their question seriously and make them understand that money is limited. You must remember that money is an abstract concept for children. They still don’t know how money is earned, so they assume that your family has an unlimited supply.

Instead of saying that money doesn’t grow on trees, try to give them examples so that they can completely understand. You can use examples that they can relate to. For instance, if they have a piggy bank, explain that you do the same with the money you earn at work, just like what they do when they keep the change you give them. Just like that piggy bank, you can’t take money out of the bank easily just because you like it. Explain that you only use the money you keep for essential things, so they can also do the same thing.

Question #2: How Much Money Do You Make?

We understand if you’re reluctant to share the details of your salary with your children. However, if you don’t answer this question, it may cause them to feel anxious and scared about the topic that may well last into adulthood. But always remember that too much information can overwhelm them, so try to answer them honestly without telling them more than they need to know.

You don’t have to give them exact numbers since it doesn’t mean much to them. Just tell them that you make enough money to pay for the things that your family needs.

Question #3: Is Our Family Rich or Poor?

Children start to develop the concept of rich and poor the moment they enter elementary school. As much as possible, you should begin shaping their definition of it before they can hear it from their friends. You can tell them that being rich is not all about having a lot of money. You could say that a family can be rich in happiness and love for one another, enough to call a family rich.

Conclusion

These are just some of the common questions that children ask their parents. If you ever encounter other questions not mentioned here, just remember to be honest with them and explain in a way they can understand completely. Never tighten your lips if your child asks questions about money because that may only develop their anxiety and fear about the topic. As mentioned, you should take it as an opportunity to teach them properly about money so that while they are still learning, they are already developing some life skills and values.

If you’re looking for tools to help your child with financial education, Kiddie Kredit is the perfect tool you can rely on! Kiddie Kredit is a mobile application designed to educate children on the credit system by completing chores. So, what are you waiting for? Download the app today!