4 Reasons To Show Your Kids Your Paycheck — Especially If You’re Broke
Written by
Cindy Lamothe
Edited by
Jenna Klaverweiden
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Talking to your kids about money might sound about as fun as doing your taxes, but it doesn’t have to be that serious. Even if your paycheck isn’t exactly brag-worthy, letting your kids see what’s coming in (and where it’s going) can be surprisingly eye-opening for them.
Rose Jimenez, financial specialist and chief financial officer of Culture.org, explained that an important reason to be transparent with your kids about how much you make — especially if your income is modest — is it helps normalize financial limitations as part of everyday life, not something to be ashamed of or hidden.
Here are the top reasons showing your paycheck — yes, even the painfully honest one — can actually be a good thing.
Also see five habits of parents that are teaching their kids to be bad with money.
They Develop a Realistic Understanding of Money
According to Chris Heerlein, CEO of Reap Financial, being open about your income, especially if it’s not much, helps children develop a realistic understanding of money.
When kids know the financial limits, they learn the value of budgeting and prioritizing needs over wants. This transparency encourages them to make informed financial decisions as they grow older.
They Learn To Make Thoughtful Choices With Money
Explaining financial challenges, like living on a tight budget, teaches kids about making thoughtful choices with money, Heerlein explained.
Instead of feeling deprived or frustrated, they can grasp the concept of resourcefulness and saving. Transparency also helps build trust, creating an environment where children feel secure and less likely to develop unrealistic financial expectations.
Jimenez shared a similar view. “Many children grow up in households where money isn’t discussed, which can create anxiety, confusion or unrealistic beliefs about how adulthood works,” she said.
By sharing your financial reality in age-appropriate ways, you teach kids that having a budget is normal, and that making thoughtful choices is a sign of responsibility, not lack.
They Cultivate Financial Empathy
This kind of openness can also cultivate financial empathy, Jiminez explained.
According to Forbes, financial empathy can be cultivated when one is put in a position to understand the thoughts, feelings and circumstances of another person financially. When kids understand the trade-offs you make — like skipping takeout to pay a utility bill or saving up for school supplies — they begin to appreciate effort and sacrifice.
It also gives them context for contributing in age-appropriate ways, like helping around the house, budgeting their allowance or setting savings goals of their own.
You Set Them Up for Future Financial Success
Heerlein emphasized that having age-appropriate conversations about money sets children up for financial success in the future.
Starting with basic concepts like needs versus wants, and later progressing to more complex discussions on saving and managing debt, equips children with the tools they need to make informed decisions as they grow.
Jimenez agreed that this kind of transparency lays the groundwork for healthy conversations later — about college costs, part-time work or financial aid. “Because you’ve already created a family culture where money isn’t mysterious or off-limits,” she said.
Being honest today sets your kids up to be financially literate, emotionally grounded and more appreciative tomorrow.
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Sources
- Rose Jimenez, Culture.org
- Chris Heerlein, Reap Financial
- Forbes, “4 Tips To Increase Financial Empathy and Self Awareness.”
