AD| How to Speak Honestly to Your Kids About Your Family’s Income Level

In America and anywhere in the world, you have those who are wealthy, those who are decently well off, and then you have those who live in poverty. That has been true in any human society that has ever existed, and it will likely always be that way.

It’s very difficult to have equality concerning how people live because there will always be those who have more of an aptitude to get ahead. There will be those who amass wealth through underhanded means. There will also be those whose families have wealth when they are born, so they’re bound to live a life of privilege, assuming their family does nothing to squander that wealth before they inherit it.

If you’re a parent or guardian to some kids, and you don’t have much money, they’re going to realize it at some point, and they’re probably going to ask about it. At that time, it’s helpful to have a conversation about wealth and income levels in general.

Why Does Money Matter?

One of the first things your child or children might wonder about is why money matters in the first place. You can inform them you need money to buy things, and rarely does anyone give anything away for free.

You can tell them that you need money for things like housing, food, clothing, and health insurance. You can also inform them that some people don’t even have these basic necessities.

For instance, in 2019, 8% of Americans lacked health insurance. It’s not a bad idea to frame your money discussion around something like health insurance since it’s something so critical that some Americans lack.

You Can Explain to Them How They Can Accrue Money

If your family does not have very much money, you can explain to your kids why that is. You might tell them that you come from a blue-collar background, for instance, and that you did not inherit wealth like some people do. You might also explain to them about generational wealth and how money tends to stay in a family, provided the members invest it well.

You can talk to them about your job, and how much it pays. Maybe you work doing something about which you’re passionate, but it doesn’t pay very much. It’s not a bad idea to tell your kids that you’re not ever likely to make a lot of money in your profession, but you feel fulfilled and that you’re making a difference anyway.

You can also explain how, when they’re older, they can purposefully seek out a career path that will pay them more money if that’s what’s most important to them. You can talk to them about going to college or trade school to get more and better job opportunities. You might even speak to them about how you’ll help them do that if you believe it’s possible.

You Can Explain How Money Relates to Your Value System

If your kids tell you that some other children in their classes seem to have more money than you do, and therefore, they have nicer things, you might explain to them that money does matter, but it’s not everything. You can tell them that it’s not necessarily a good thing to be materialistic. As long as they can make enough money to support themselves and live comfortably, they should not be greedy.

The fact is that some families and some individuals emphasize money and accruing wealth more than others do. You might have someone who believes making money is the most vital thing you can accomplish in this world. If those are your values, you can certainly tell your child that.

However, most people would agree that there are more essential things than money, like family, friends, and happiness. If your child learns to tie money and happiness together without exception, they’re probably bound to have a difficult time in life.

As your child grows, they’ll learn to either follow your teachings regarding money and wealth, or they might take a different path. Remember, though, that what you say about this crucial life aspect will probably stick with them.

Consider the values you want your child to have, and use the time they ask about money as a teachable moment. Hopefully, they take to heart the lesson you impart to them, and they will regard money as necessary, but they will not spend their every waking moment chasing it from then on.