I know, it’s one of society’s most honored norms. You never, under any circumstances, ask someone how much money they make.
Screw it.
I’m serious. There are two people whose incomes you should know. They’re your parents. Knowing how much money your parents bring in and how they run the family budget is an important tool in understanding real world finances.
For one, it removes a mysterious aspect of money. Adults typically act like their income is some government secret worth more than all of the information inside Area 51. It’s not. It’s a number they assign a high importance to. These types of secrets don’t help you learn about money and it’s functions.
Furthermore, there’s a trust issue at play. Why don’t my parents trust me with this information? Why exactly can’t I know it? Answers like “it’s none of your business” and “just because” are pretty common, but they’re also bullshit. This just creates a situation where you’re kept in the dark and in not-an-adult-yet-zone forever.
You need to know what’s expected of you. Are you paying for your 1st car? College tuition? Room and board? Prom? Just because your parents could pay for these expenses doesn’t mean they will. Knowing their income can be the 1st step in figuring out who’s responsible for what.
Lastly, it lets your parents be direct and honest. Instead of making up a reason why they can’t afford to buy something, they can explain financially that there just isn’t enough money in the budget. This is a great example of how the world isn’t all rainbows and butterflies. Knowing the truth is better. You can deal with bad news just fine.
Overall, I think there’s a lot to be gained from kids knowing how much money their parents make. I think the biggest benefit is how much secrecy is removed. Your parents no longer have to dance around money issues any longer if all the cards are laid out on the table.
