Having the money talk with your kid

Having the money talk with your kid
(Source: AP Graphics Bank)

(KAIT/NBC) - Experts say talking with kids about money can be tricky business, but the consequences of getting it wrong can be far-reaching.

Family wealth manager Bruce Hyde says there can be big consequences that come with giving kids money before they're ready. He said when children are given too much wealth too easily, that's where the problems begin.

Whether you have a little money or a lot, it's best to start talking to your children early. It's best to keep the conversation going.

Hyde said kids should know by their first year of high school about how they're paying for college.

"I think preparing them and not surprising them too late is an important conversation to have," said Hyde.

Hyde does warn parents on giving children money early, particularly when considering a will. He recommends setting up a trust that pays out over time.

The money talk is complicated at any age, but the sooner the conversation begins the easier it will be.

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