Tips for Financial Conflicts Between Kids and Parents

Parenting children of any age has its ups and downs, and part of the job is navigating a variety of conflicts as children grow and mature. One of the most common conflicts are those related to money.

Kids want to have these conversations, too. In fact, half of children in a 2021 survey conducted by T. Rowe Price said they wanted their parents to talk to them about saving money, and 1 in 3 would like to discuss how to budget.

Read on to learn about the most common conflicts parents and children have about finances and tips on how to turn these conflicts into learning opportunities.

Help kids be specific about their savings goals. It is important to not just set goals, but to break them down into smaller steps and clearly establish where the money will be saved—a piggy bank, a savings account, or even a debit card for kids.

#4. Child’s spending habits

#3. Child’s  allowance amount

Allowances are an important way for parents to teach their kids not only how to manage their money but also the value of working to earn that money.

Teaching kids about properly using credit cards can also build good habits, such as establishing a prepaid card or authorizing a child to use a credit card—with features activated to track their a child to use a credit card—with features activated to track their spending.

#2. Child used credit card without permission

It is also important to keep in mind that managing children’s behavior shouldn’t be focused on punishment. Positive reinforcement, such as praising a child when they engage in desired behaviors, can be very effective.

#1. Parent didn’t buy something child wanted

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