It is often considered rude or embarrassing to speak openly about money matters. Local and international articles and financial experts have discussed this “money taboo” and found the main reasons behind this dilemma.
First, people are afraid of being judged—either they are thought of as a bad provider if they admit they’re struggling financially, or they’ll be judged as a mayabang if they talk about their financial gains.
Another reason is that they’re afraid of people asking them for money or that people’s friendship or affection will only be based on greed: how much people can get from them. These are valid fears. right?
But research has shown that the refusal to discuss money within the family and the lack of trust and communication between parents and children—especially when it comes to money talks—can result in financial losses.
When parents are not able to properly discuss something as important as managing money, children fail to learn such essential skills—and as grownups, they would be more prone to making wrong decisions on spending, saving, and investing.
Help your child grow up without being hampered by the money taboo. Discuss finances as part of the family conversation. Depending on the age of your child, you should discuss, in an appropriate way, the family’s expenses: payments for rent, utilities, tuition, groceries, etc. Discuss them in a way that helps your child appreciate the value of hard work and of earning money and spending it wisely.
Then you can talk about income, salaries, allowances, and how important it is to stick to a budget and to put away savings and investments. Talk about how all these go together in making your family financially secure now and in the future. When these financial conversations happen regularly, as ordinary family talks, it does much in reducing the power of taboo over your family’s financial assessments and decisions.
One family conversation you should look forward to with your child is their first savings account. Opening your child’s own savings account is one of the first steps in teaching them financial skills. You can visit the online product page of kiddie savings account like BDO Junior Savers and discuss what a savings account is and why a person would need one. Go through the requirements and explain to your child the steps involved in opening the account.
The next topic would be what you and your child could do to grow the savings account. Teach your child how to put away savings from his or her allowance to be deposited in the account. You could then discuss and set up a Junior Savers Plan where money can be transferred automatically into your child’s account. This can be done by enrolling your child’s account in your BDO Online Banking account and setting up scheduled ‘Send Money’ transfers from your account to your child’s account.
Money is too important to avoid talking about. A proper discussion of finances within your family ensures wiser financial decisions and a better future for your children.