How to talk about money with your children

Statistics show that baby boomers are going to transfer a total of $30 trillion to their children. In another survey 91 percent of parents with more than $5 million investable assets said they will give them to their children. However, almost half of the parents are concerned about leaving too much money to their children. Most of these parents haven't talked to their children for fear that the young ones might feel entitled and would just depend on the money they will inherit in the future.

DNA wrote that children should get familiar with money. Parents can give them a sizeable amount of monthly allowance so they can practice how to budget it. The children should also learn about financial instruments beginning at a young age. They should be informed about life insurance, mutual funds, stocks and more.

Meanwhile, the Michigan State University Extension reported that it is best to teach children the language of money while they are still young. Terms like Roth, annuities, 401(k) taxes and more are difficult to understand when people encounter them in their lives for the first time. This is why it is best to learn them at a younger age.

In a report by Forbes, Todd Angkatavanich, who is the co-head of the Withers Bergman LLP's Trusts, Estates and Charities group in the United States, said that the sense of stewardship and entitlement should be instilled to the children. However, there should be balance between these two values. When talking about money with the children, parents shouldn't dive immediately to specifics, it should start with values.

Families that have assets, business, and entities, can include their young ones in one of the committees. They can give their child or grand child roles. This way, they can learn the values of responsibilities, stewardship and preservation. It is also very advisable to talk to a financial adviser when talking money to the children.