Darrin Haubert at Katterhenry Investment Group. Kids ask tough questions about money; it's how they learn. As a parent, these are teachable moments that offer us a chance to impart some financial wisdom.
Here's how to answer three tough money questions from your kids.
Question one: Are we rich?
Explain that being rich means different things to different people. And that you are fortunate to
have the resources that you do. This also is a great time to remind them that wealth is not the only indicator of happiness and success.
Question two: Can we have [enter expensive item here]?
Explain that people have budgets and that not all expenses are justifiable. You can also use this opportunity to discuss the importance of planning and saving for the future.
Question three: How much money do you make?
Explain that most adults don't like to share the amount of money that they make. Use this as an opportunity to talk to your child about the importance of a healthy relationship with money. Remember that the key to answering tough money questions is to be honest, open, and sensitive to your child's age and maturity level.