Talking to Your Kids About Money

by Joel R. Freedman, CFP®, CPWA®, Managing Director

Talking to children about money can be challenging, particularly as family finances become more complex.

Questions about money tend to evolve as children grow. When should you start the conversation? How much should you share? How can you help your children appreciate what they have while preparing them to make thoughtful financial decisions of their own?

There is no universal approach, but starting with simple, age-appropriate conversations can help children develop healthy financial habits.

Start with Everyday Experiences

Financial education doesn’t have to begin with investing, taxes, or estate planning.  Young children can understand basic concepts such as saving, making choices, waiting for something they want, and helping others. Everyday experiences often provide natural opportunities to introduce these ideas.

For example, a child who receives birthday money might choose to spend part of it, save part of it for a future purchase, or donate part of it to a cause they care about. Experiences like these can help children see that money involves choices: what to enjoy now, what to save for later, and what to share with others.

As children get older, financial decisions can evolve into managing an allowance, opening a savings account, taking on part-time work, or working toward a specific goal.

Children won’t always make the decision a parent would prefer. They may spend money on something that quickly loses its appeal or struggle to reach a savings goal. Experiences like these can become part of the learning process.

Expand the Conversation

As children mature, those early lessons can lead to broader conversations about credit, debt, investing, taxes, insurance, entrepreneurship, and estate planning.

For families who own a business, these discussions may also include how the company began, how decisions are made, what ownership requires, and how the business responds to changing conditions.

Sharing those stories can help children understand where family resources came from and why they matter. They can also create natural openings to discuss responsibility, gratitude, charitable giving, and the role money plays in supporting the people and causes that are important to your family.

Create Space for Ongoing Dialogue

Financial conversations don’t need to be formally organized. Some of the most meaningful discussions take place during ordinary moments – for example, dinner table talks, planning a family trip, or making decisions about charitable giving.

Children are often more willing to ask questions when money is discussed openly and without criticism. Regular conversations can make larger topics, such as inheritance, business succession, or family philanthropy, feel more approachable when the time comes.

Talking About Money: A Brief Q&A

When should I start talking to my children about money?

Financial lessons can begin whenever a child is ready to understand basic concepts such as saving, spending, and giving. More advanced topics can be introduced gradually as they mature.

How can I encourage a healthy attitude toward wealth?

Consider focusing on responsibility, gratitude, work, generosity, and purpose. Conversations about service and charitable giving can help children understand how financial resources can be used to support people, priorities, and causes.

What if my child isn’t interested in financial topics?

Connecting financial lessons to their interests can make the conversation more engaging. Saving for a goal, starting a small project, investing, or supporting a favorite cause may feel more relevant than discussing financial concepts in the abstract.

What is a common challenge families face when discussing money?

Some conversations feel easier to postpone, especially when the topics are complex or emotional. Starting early and revisiting the discussion over time can help children build understanding gradually.

Moving the Conversation Forward

Talking to your children about money is an opportunity to share knowledge, discuss the values that matter to your family, and help them prepare for important decisions later in life. Every family will approach these conversations differently. Keeping the dialogue going as children mature can help them approach adulthood with greater confidence and a clearer sense of responsibility.