April is recognized as financial literacy month which, according to the department of higher education, reminds us to focus on learning as well as establishing and maintaining healthy financial habits. Over the years I’ve moderated many discussions on how parents could foster a productive financial conversation with their children, but until recently, I’ve been challenged to come up with a succinct way to do so. In a more recent conversation, one of our dear clients summed up my point by saying, ”Oh you mean the three S’s?” With a bewildered look, I said “Excuse me?” They said,” You know, the three S’s: Spend, Save and Share.” BAM! Thanks to them, I can now lead conversations using these three basic principles and for youngsters, I don’t think the conversation needs to be more complicated. For every $1 one receives, consider breaking it into three pieces and start to formulate one’s financial values (or habits). Clearly saving is what is most focused on, and spending is sometimes frowned upon. But why not spend some of one’s money, and consider at an early age sharing it as well.
How do you communicate these principles to your children?