Some experts in Manitoba point to the need for families to talk to their children about the realities of money and finances.
As the province contends with a higher cost of living, such conversations are highlighted by a need for greater financial literacy. Evelyn Jacks, president of Knowledge Bureau, said that children are already exposed to the world of money and consumerism at a young age. She added that it would be a good opportunity for parents to broach the topic, ensuring that kids can grow up to make good financial choices.
“When we teach little children about responsible choices for the present and also the future, it is setting them up for a lifetime of a positive relationship with money. That requires knowledge and skills,” said Jacks. “It is part of our responsibility as parents to help children understand that.”
Jacks said that financial literacy can go a long way with helping kids learn how to save and be smart about their money.
Gary Rabbier, president of the Canadian Foundation for Economic Education, echoed that sentiment, stating that financial skills are essential in helping younger people manage their lives. Adding that there is a correlation between financial health and mental health, he said ensuring young people can make good choices starting young could go a long way.
He noted that in talking to young people, families have to be ready to answer questions that could “probe into the details of their personal lives.” While he said that such questions are seldom asked, bringing children into the conversation about how much it costs to run the household can be very helpful.
“When it comes to what you share with your kid is an entirely personal decision, and it depends on personal situations… we leave those decisions to parents to decide where you want to go with that and how much you want to share with them,” said Rabbier. He said that despite this, families shouldn’t shy away from talking to their kids. They want to learn, he said, and it’s important to help them understand.
Rabbier said that there are various other ways parents can teach their children about good financial choices. These include letting them make mistakes at a young age when the consequences aren’t too great, providing insight into some of the mistakes parents have also made, and providing learning opportunities in a more natural manner.
“Believe me, they want to learn. They’ll be delighted that you (taught them),” said Rabbier.