Including The Kids In Budget Meetings?
Paul has high-school kids and wants to know if he should include them in budget meetings and financial talks. Dave says yes—to an extent.
QUESTION: Paul on Twitter has high-school kids and wants to know if he should include them in budget meetings and financial talks. Dave says yes—to an extent.
ANSWER: You should include them to the extent that something is not an extreme situation, like you're extremely wealthy or you are about to be foreclosed on. Those are two extremes. I don't want to put these young people in these kinds of situations that they can't emotionally handle. But as long as we're doing a standard, regular monthly budget…you just don't want the kid to have to digest a $1.2 million income emotionally. But if you're sitting there with the typical income and they can look down and go, "That's what the light bill costs? No wonder Mama yells when we don't turn off the lights." That's good for a high-schooler to see or even younger. Understanding what it takes to run a household is absolutely vital. When we're sitting and deciding—as long as Mom and Dad aren't fighting about it—it's good for them to hear the give and take. Parents who never let their kids handle money and never let their kids in on them handling money run the risk of that kid never being able to handle money.