LAS VEGAS (KLAS) — While interest rates, inflation, and other financial topics are weighing heavy on most parents’ shoulders, most kids don’t have a clue what these financial terms mean and how they can impact their parents’ finances. 8 News Now connected with an expert on why and how to talk about these topics with your kids.
Greg Murset is a parent of six and a certified financial planner and consultant who started the “BusyKid” app to help his kids and others learn how money works.
He said teaching your kids the fundamentals of life skills early in life lets them practice along the way. Things like mortgage payments, interest rate hikes, and inflation are all relevant. He said to be transparent and teach them by letting them know how it’s impacting your family.
“Teaching your kids about inflation and interest rates, it’s all very important. They need to learn it in the context of overall personal finance,” Murset said. “Point it out when you go to the gas station to fill up your car, point it out when you go to the grocery store and buy basic things. This is how it will crystalize in their minds.”
Teaching them critical financial skills at home is key to preparing them for success later on in life. Murset said when they’re young, teach them how money comes in, and give them chores and responsibilities. At ages 8 to 13, reinforce a balanced financial approach about earning, saving, and donating. Then when they are in high school, incorporate investing.