The other day, I was talking to my daughter about finances and I realized that talking about money has almost become the new taboo. I realized that even with my closest of friends, I don't feel comfortable talking about how much money I make or how much debt I have. These are people who I feel comfortable sharing very personal information with, but still we don't talk about money. Why not?
There are tons of book on the market that give parents advice on talking to their kids about sex, but not many that deal with talking to kids about money. For most of us, our ideas about money have been heavily influenced by television, movies and advertising. We think that we all should be able to afford new electronics, eating out and other luxuries. The advertising shows us how everyone else has these things and suggests that we deserve them too. They are hard to resist - especially when no one wants to talk about the importance of financial health.
When was the last time your parents talked to you about their debt to income ratio?
It's important for all of us to talk about finances and get real, with ourselves and those closest to us. Money management is a skill, not something we are just born knowing. It takes work, practice and knowledge.
Here is an infographic that shows how little parents discuss money matters with their kids:
What do you think we can do to help our children make good money decisions?