main idea: How to discuss finances with children at different ages
We have covered some ground on the topics of Accountability and Personal Responsibility. These ideas are important to a free society. Stemming from these topics is the concept of fiscal responsibility. That term is most commonly used when discussing government finances. Unless you have been living under a rock you know that balancing taxation and spending are not exactly the strong suit of our government.
According to the Congressional Budget Office the US government budgeted for revenue in 2021 of $3.8 trillion with spending budgeted for $6.8 trillion. Quick math, that leaves us saddled with debt in the amount of $3 trillion. According to the US Debt Clock our national debt is more than $28 Trillion as of 7/31/2021, and rising as we breathe.
Are your kids aware of government spending- State or Federal? Do you have discussions in your home?
Fiscal Responsibility, though most often used in reference to the government, can also be applied as part of the idea of Personal Responsibility. We all must be responsible for ourselves, not only in our actions but also in being good stewards of our financial resources.
Do you allow your children to have visibility into your family’s finances?
Do you have strategies in place to allow for your children to earn income, and if so do you provide guidance for spending or encouragement to save?
Are you having discussions with your children about earning and spending vs. saving? Is there a balance?
How do you discuss charity and voluntarily sharing/helping with your resources?
We cannot control government spending, but in teaching our children the concept of fiscal responsibility. Maybe someday they will fill the seats in Congress and begin to repair the damage that has been done by years of disregard for the financial health of our nation.