Should you keep your salary a secret?

thought they might tell their friends or family members.

As they got older, we continued to keep the information secret, because we didn’t want them to think we had so much that they could pressure us to buy them things.

But as we were going over the FAFSA form, my daughter kept asking why she couldn’t know how much I earn. I babbled a bit, but then I told her. Her reaction was more muted than I thought it would be.

She got it. And, she immediately said, “I won’t tell anyone.”

So much of personal finance is about these types of moments. A lot of financial issues revolve around the personal dynamics of the dollars you do or don’t have.

Who needs to know your income aside from the financial professionals you hire? Here’s who.

Your children (and that’s pretty much it): You’ll have to judge when the time is right, but I believe you should eventually share your earnings history with your children. However, the information needs to be presented in a way that helps them understand your gross isn’t your net.

Tell them about the impact of taxes. Discuss the danger of obligating too much of your income to debt. Have a conversation about the urgency of saving for an emergency and retirement.

Your children need to understand that although they benefit from your earnings while they are under your authority, once they’re grown, your money isn’t their money. The lines have to be drawn so that they don’t think mom and dad are their personal bankers.

Money or the knowledge of it can change the dynamics of a relationship. If you don’t keep your income private from nearly everyone, you might find yourself pressured to be other people’s piggybank.