Our children regularly ask us about our finances. We are very open about this ourselves, and we talk to our children about money and our other financial affairs. So also about what we earn, how much money we have in the bank account, what we save, but also about what we cannot pay and why not. And about our investments and actions in the crypto world, for example. However, I hear plenty of parents around me who never talk about it with their children. That is why I am curious whether we are tackling this 'weird' or not?
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It is part of the education of course, teaching your children how to handle money. But is that only about their own pocket money and savings? Or is that also about the financial situation of you as parents? And everything that comes with money and finance in the big 'evil' world?
I understand that discussing their own financial situation is a bridge too far for many parents. You may feel that your children have nothing to do with this. But we have decided to make these kinds of matters negotiable. And the questions come naturally. It is not that we show off our financial situation, but it is true that we provide explanations if questions arise.
That question came up years ago during dinner. I think it's a good question, especially if children have to start thinking about their own lives at school. The profession they want to perform, for example, and the money that can be earned with it. When you talk about it with each other, the question naturally arises how much you actually earn as a parent. It doesn't feel right for me not to be clear and honest with the children about the money that comes in every month.
Yet discussing money and income is quite a taboo in the Netherlands, not only with your children, but also with other adults. For example, we do not know what our friends earn. Not even from friends that we really consider good friends. That is actually strange. On the other hand, we are now also not hanging on to the big clock how much money we have in our savings account and how much money we invest in shares and crypto. Our friends know that we buy cryptocurrency through Bitvavo, we have shown that. But how much, they don't know. It's kind of like 'if you don't say it, we won't say it' or something like that, haha.
Anyway, I can understand that in the workplace, for example, there is no discussion about salaries. There are people who are very much in favor of transparency, but it is also suggested that openness of salaries can cause problems.
But I want to avoid that whole taboo atmosphere around money for my children.
I have already stated one of the reasons above. I don't want any secrets in our family when it comes to money. But there are even more reasons why we just discuss our financial situation with the kids. I am sincerely convinced that children - especially in this day and age - should be aware of everything much faster. Developments follow each other at a rapid pace, also from a financial point of view. Our kids have had their own bank card for years and Lotte also has clothing allowance since this week (just 12). Luc now knows how to pay with your phone and Lotte would like that too, but unfortunately, you have to be 16 for that.
Besides the fact that we want to introduce the children to the world of money, I also think that talking about your own financial situation makes them aware. We bought a new house two years ago. A house in the countryside, consisting of two houses on about 3000 m² of land. I want our children to understand that it doesn't come naturally. And that - in addition to a good job, savings and a fat mortgage - sometimes choices have to be made in order to be able to pay something. Now we can't complain, but especially in the first year we kept our hands on the cut.
For example, we eat out much less and order sushi less often. And it's too bad to say, but especially that lack of sushi the kids really miss. They are both so crazy about it. But I notice that everything is slowly paying off. For example, Lotte and I made our own sushi last week. A lot of work, but it was Lotte's idea. We got diners and then she said 'Mom, can we make some nice sushi? Then we have something really special, but it doesn't have to cost as much money as we make it ourselves." It's the little things that make you notice that children learn to see the value of money.
Because even if the money is in the account, a nest egg is also important, right?
That is why we don't mince words when it comes to the money we save and the money we invest with. In addition, I think that the world of cryptocurrency will become very important in the future. How nice is it if they already understand a bit what that is and how it works. And no, we don't literally go through the technical explanation that Frank and I learn when studying together. But occasionally involving them in the different cryptocurrencies we purchase, how we do that (via Bitvavo) and why, we try to explain that to them. Just like the fact that you should never do this with money that you really can't afford to lose. Because you don't have a guarantee!
And over the weekend we discussed taking them a step further. Not only talk about cryptos but also let them 'play' a bit. This way they can really experience how it works. We start at both with a small amount of which they can then purchase pennycoins themselves. Cheap coins to trade with. The advantage of pennycoins is that -if you buy them- you can immediately buy a thousand pieces. If you start with € 25.00, you can already make quite a few purchases. That's how we started ourselves at the time. Start small and experience the possibilities, a great learning process!
Of course it is under supervision, you undoubtedly understand that. How do you deal with conversations with your children and money matters? Do you discuss it or do you think it is none of their business?
