Approaching conversations about money can be challenging in any situation. If you bring up this conversation with your employer, coworkers, and even your parents, it can be a touchy subject to broach. As a child, my siblings and I did not lack for anything. We always had nice clothes to wear and food for every meal. However, I realized that I really wanted to have genuine one-on-one conversations about how I could manage and grow my money. I remember the first time I asked my mother about money and the confusion and discomfort that followed. Instead of having a genuine conversation; she enrolled me in a personal finance course in high school. I learned a lot from that course and by watching my mother manage her finances. However, being able to ask questions and learn from her experience would have proved invaluable in my development and understanding of how money works.

As a child, I recall my family asking my mother for money, and she was always able to provide them with financial support in their time of need. However, I do not recall her educating her siblings on how they could manage their finances better or finding additional resources to help them fill the gap there. So, what did I do? I keenly watched everything that was happening so I could learn more about the dos and don’ts of money management so I would not make the same mistakes. But was it enough?

It’s Time to Talk About Money

In many cultures, talking about money is not done, especially when you have not had access to wealth in the past. Not only is it not a topic of discussion, but it is rarely discussed because if you bring up the topic of money, then there is a stigma that someone may ask you for money in their time of need. For example, after joining the military, I earned about $20K annually and mentioned this in a conversation with a family member. That family member had not had a steady job for years and thought I was inflating my income. Nevertheless, I was offended and never had another conversation with family members about my income from that point on.

Today, I know that was not the correct approach. I realize I should have informed them that there are other opportunities available that can help them gain a steady paycheck and enhance their financial situation. Sometimes, we have to put our feelings aside and advocate for ourselves and our families to improve our financial well-being.

Bridging The Gap

So, how do we bridge the gap from not having conversations about money to making it more acceptable to openness and sharing? It starts within the home. When adults have conversations with children at a young age about money, it can help adults become more comfortable talking about money and enable children to learn as they grow. Starting with small life lessons, such as allowing children to help make grocery shopping decisions or finding ways to earn money, can help children understand the value of money and gain self-confidence to make financial decisions. Teaching through everyday life choices can make it easier for parents to talk about money. Children do not need to know how much their parents earn at work or how much money is in a banking account, but answering their questions about money can help them build a positive money mindset. My book, Mommy, Can You Teach Me About Money? encourages kids and adults to engage in informative money conversations.

Money As They Grow

As children grow, the topics they want to learn about will continue evolving.  Topics surrounding budgeting, saving, and investing are all topics that are essential for children to learn as they grow so they can be financially literate adults. That is why I continued my book series on financial literacy to encourage families to talk about budgeting, saving, and investing.  According to the 2024 TIAA Institute-GFLEC Personal Finance Index, the financial literacy of Black and Hispanic Americans is lower than that of Asian and White Americans. In addition, the financial literacy of Gen X is significantly higher than that of Gen Z. This data reflects that financial literacy decreases as each generation comes along. It’s essential to teach youth more about credit, loans, and other aspects of borrowing money to reduce the cycle of debt. Teaching and talking about money at home, loan features, and the importance of paying creditors on time can help enhance the financial literacy of all generations.

Cultural Barriers

Conquering the cultural barriers Americans face with financial literacy is ongoing. Low income, little to no inheritance, mistrust of banks, the loss of financial resources due to increased income, and obstacles to employment entry can further widen the wealth gap. However, the conversation must continue with today’s youth to bridge the gap and prepare them to function in society as financially literate adults. The commitment is for parents, employers, and the government to enhance the community’s financial literacy, break the stigma about talking about money, and narrow the wealth gap among ethnicities and generations.

 

Annette Harris, AFC® is the founder of Harris Financial Coaching at www.harriswealthcoach.com. Visit Annette’s FindAnAFC profile to learn more about her professional services and discover if they align with the financial guidance you seek.

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