Talking to your kids about money can pay off in the future

Roth IRA, high-yield savings account and mutual funds were just a few of the phrases regularly thrown around my family’s dinner table when I was growing up.I didn’t realize it then, but having a parent who worked as a financial advisor for several years meant that I was gaining invaluable financial knowledge. Those conversations, which not all of my friends and peers got to experience with their own families, helped boost my confidence with money and set me on the path to becoming a financial journalist. That’s true even though I grew up in a household of lower socioeconomic status. My brother and I ate reduced-price lunches throughout our entire time in the public school system. My dad’s stint as a financial advisor ended after only five years.What I didn’t know as a teenager, hearing my dad rant about diversifying your income and putting money into investment accounts, was that my exposure to his personal finance lessons at an early age would stay with me for years to come.How financial exposure impacts kidsIt’s no surprise that kids absorb habits from their parents. Behaviors around money are no exception — whether your parents talked to you about money or not.Kids primarily learn about money from modeling their parents’ behavior, Brad Klontz, a clinical psychologist and certified financial planner, tells CNBC Make It.Klontz calls these moments “financial flashpoint experiences” — events that happen in childhood involving money that kids may or may not fully understand, depending on whether or not their parents explicitly explain their meaning.Think about being told not to spend your $5 allowance on candy or toys as a kid: Did your parents explain the value of saving your allowance? Did they explain the concept of investing? Or, did they simply tell you not to spend it because they said so?It makes sense that parents should teach their kids financial literacy. But in many instances, money can be a sore subject for families. And parents may not be equipped to teach their kids about a…

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