Talking about money within the family is still taboo in many places, yet the discussion doesn’t have to be dead serious.

Taking the time to talk to the family about the financial situation and how to manage them where everyone gets to have a say is setting up everyone to contribute to the family’s financial goals and better money handling as they grow.

If you’re unsure how to discuss finances with your family, you can read the Money as You Grow guide from the Consumer Financial Protection Bureau as a resource.

Allowances as powerful learning tools for children growing up. It gives your child the opportunity to manage their own money while still having you as a guide during the times they falter.

However, with this in mind it is important to know your kid and how much allowance you can shell out. Moreover, the terms of the allowance must be clear-cut: Will their allowance be based off on their behavior, chores, or neither? Should they save a specific amount of their allowance?

Knowing all these boundaries you are teaching the children involved thus setting them up for financial literacy.