Many parents do not like to disclose the amount they make to their children. They think that the kids can disclose this to other members of the society which may have some negative impacts. When your kids become of age, it necessary to tell them the amount you earn. This will foster a good parent-children relationship and will help you plan for their future lives.
1. Big titles do not imply enormous salaries.
If you have a big title at your workplace, this will not mean that you earn a huge salary. Your children may demand more than you can afford. You will be compelled to satisfy their desires, and this may injure savings and investments. Do not be ashamed to tell them what you earn. Explain to them every detail of your occupation; they will be okay with that.
2. Motivation to work
If you are not well up, let your kids know. They will motivate you to work harder so as to attain the status of their friends. On the other hand, you will tell them to work hard in their endeavors to contribute to their success.
3. Make them feel closer to you
Children who know very little of their parents may feel disconnected from them. If challenged by a problem, they might not let you know. Kids feel secure with individuals who show love and let them know of such valuable information. They might confine their issues with other people other than the parents in case the parents are reserved to sharing their information.
4. Financial management
You will be able to teach your kids to manage their finances by explaining to them how you manage yours. Financial management skills may be irrelevant when the kids do not know how you manage your salary. You might not disclose the entire amount but tell them how you spend up to 90% of your income.
5. Compliance with the law
Children emulate what their parents do. Let them know that you pay taxes and it is mandatory for every citizen to remit taxes to the state. Explain the purpose of these payments. When they grow up, they will faithfully pay taxes.
Your kids may suppose that you earn a lot of cash that may not be the case. They will demand a lot of material requirements that will inflate spending and cut down on savings and investments. Let them know how much you make and your tax payments. Teach them how to manage minor finances. When they become of age, they would be in a position to control their salaries and pay taxes to the state. You should not be ashamed to disclose such information to them.