Today we have the pleasure of having Dr. Deanna Cole, a a licensed psychologist with a broad background in neuropsychological and psychological assessment, therapy and psychoeducation share her thoughts on finances and children:
It’s important that parents talk about money and money issues with their children. Kids are often aware of their parents’ financial burdens even when adults attempt to shield their children from life’s stresses. They should also be made aware of the good things money brings!
Teach your kids the value of financial planning, saving and possibly even investing. When you enjoy a vacation, a trip to the circus or a simple trip to the ice cream shop, you have a perfect opportunity to talk about how nice it is to have money to enjoy life’s luxuries (and slip in a bit of education or your own financial wisdom as well). Better yet, work out a plan with your kids ahead of time to come up with the money for a special event. Have them get creative about ways your family could generate or save the money to put toward something fun.
Should kids get an allowance?
Kids should be required to do chores and should receive an allowance but the two should not be tied. In other words, chores are a requirement of being a part of the family, living in the family home, etc. Allowance is separate (not compensation for completing chores).
An allowance is a great teaching tool to educate children about the buying power of money. If they never have it, how will they have a chance to practice with it? (But remember, this includes making mistakes as well!) Parents who give an allowance should capitalize on the opportunity to teach (appropriate to the child’s age) about saving, budgeting, goal-setting and investing.
Dr. Cole has worked with clients across the lifespan continuum (infants to geriatric clients for assessments, and 3 years old to older adults for therapy). Her clients have been diverse in presenting problem, age, gender, race, culture, ethnicity, national origin, religion, sexual orientation, marital status, educational background, disability, language, family structure, and socioeconomic status (SES). Dr. Cole has provided psychoeducation and training on a variety of topics and is currently teaching doctorate level courses for students studying to become psychologists. She is fluent in English and Spanish.
For more information about raising financially savvy kids, or to invite Dr. Cole to speak at an upcoming event, visit her website at www.drdeannacole.com.
