Why You Should Never Lie To Your Kids about Money

kids and money

White lies are kind of a wonderful way to pacify your kids. Instead of telling them no, they can’t do something, you tell them you’ll talk about it later. Instead of being honest about something, you vaguely answer and then change the subject like it’s your business. We all lie to our kids, but lying to them about money is a dangerous habit we need to stop right now. See, your kids (our kids) learn from us. They learn by our words, our actions and our examples. So if we lie to our kids about money, we could unintentionally make their lives that much more complicated. We feel that it’s not our place to discuss our finances, and that’s a very personal decision. But the truth of the matter is that kids are a lot smarter than we like to give them credit for, and they see through us. Perhaps we have plenty of money and don’t want our kids to know, or maybe you are in debt and want them to steer clear of that information because you don’t want to hurt them or embarrass yourself. Whatever your reason for not being honest with your kids about money, you should consider a few reasons lying is not always for the best.

Worry Consumes Kids

Kids are very  much aware of what is happening in their house, and it’s not always obvious to you. When your kids see you whispering and becoming quiet when they are near, they are going to worry. They are going to worry that you are going through something and they’re going to stress.

They Learn Nothing

Your successes and mistakes can teach your kids far more than you realize. Watching you make mistakes and deal with the consequences is good for kids who need to learn that there are real issues with finances that are not carefully handled. Additionally, seeing you succeed is going to teach them valuable lessons.

Lying is Scary

When you lie to kids, they’re not sure what to expect. You might lie to your kids about money and cause them to think that you are lying to them about something bigger. The last thing you want is your child hearing one thing from you and seeing things on the news and assuming that they’re going to starve or lose your car or your home.

They Need to Understand Salary vs. Net Worth

Kids need to understand basic things of this caliber. They need to know this information so that it will help them when they are adults. Your kids are not going to learn anything if you’re not there to teach them.

Your Wording Matters

So many times I hear parents tell their kids that they can’t have something because they cannot afford it. It’s probably true in some cases, but it’s not in others. And that causes needless worry. Tell your kids no and explain to them that you’re saving for vacation or a new house or something else. But don’t tell them you can’t afford it if you can.

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