When I think back to my childhood, I feel incredibly grateful for the way my father taught me about money.
He didn’t just talk about it—he gave me age-appropriate responsibilities and hands-on experiences that helped me understand its value. Whether it was budgeting for lunch and gas money or saving up for something I wanted, those early lessons built a foundation of confidence and independence.
Today, as I work with young professionals just starting out in their career, I often hear the sentiment, “I wish I’d learned this earlier.” That’s why I’m so passionate about helping parents pass on financial wisdom to their children.
Because financial literacy isn’t just about dollars and cents—it’s about preparing them for life with clarity, security, and self-assurance.
Why Financial Skills Matters More Than Ever
Let’s start with the facts. According to a CNBC + Acorns survey, 83% of U.S. adults believe parents should be the ones teaching their kids about money—but 31% of parents say they never talk to their children about finances.
That statistic hits hard. We know it’s important, yet many of us avoid the conversation. And the consequences? They’re real.
The National Financial Educators Council reports that only 23% of kids say they talk to their parents frequently about money. Meanwhile, 11.5% of college graduates have loans in default, and 42% of millennials have turned to alternative financial services like payday loans—often because they didn’t learn better options early on.
Start With What You Know (Even If It’s Not Perfect)
One of the biggest hurdles I hear from parents is, “I don’t feel confident teaching my kids about money.”
I get it. Money can feel overwhelming, especially if you’re still figuring things out yourself.
But here’s the truth: you don’t have to be a financial expert to teach your kids valuable lessons. You just have to be honest, consistent, and willing to learn alongside them.
Start with simple conversations. Talk about budgeting when you’re grocery shopping. Explain why you’re saving for a vacation instead of buying something impulsively. Let them see you pay bills, compare prices, or check your bank account. These everyday moments are powerful teaching tools.
Age-Appropriate Lessons That Stick
Here’s how I break it down by age group:
Ages 3–7: Money Basics
- Use play money or real coins to teach counting and value.
- Let them “buy” things during pretend play.
- Introduce the concept of saving with a clear jar they can watch fill up.
Ages 8–12: Earning and Spending
- Give an allowance tied to chores or responsibilities.
- Help them divide money into categories: spend, save, give.
- Talk about needs vs. wants when shopping together.
Ages 13–18: Real-World Practice
- Open a bank account with them and review statements together.
- Teach them how to budget for things like clothes, entertainment, or school supplies.
- Discuss credit, interest, and the dangers of debt.
- Encourage part-time work and saving for long-term goals.
Make It a Conversation, Not a Lecture
Kids absorb more when they feel involved. Ask questions like:
- “What would you do with $100?”
- “Why do you think saving is important?”
- “How do you decide what’s worth spending money on?”
These questions spark curiosity and help kids develop their own financial values.
Use Tools They Already Love
Let’s be honest—kids today live on their devices. So why not use that to your advantage? There are fantastic apps and games that teach financial literacy in fun, interactive ways. A few favorites:
- PiggyBot (ages 6–10): Teaches saving and goal setting.
- Bankaroo (ages 8–14): A virtual bank for kids to manage allowance.
- FamZoo (teens): A prepaid card system that mimics real banking.
These tools make money management tangible and give kids a sense of control.
Keep the Dialogue Going
Financial education isn’t a one-time talk—it’s a lifelong conversation. Make it part of your family culture.
Celebrate savings milestones. Involve your kids in planning a budget for a family outing. Let them help compare prices when shopping online. These small moments add up.
The Long-Term Payoff
Research from Champlain College shows that students who receive financial literacy education in high school are more likely to budget, save, and avoid predatory loans well into adulthood. The impact lasts decades.
Imagine giving your child the tools to avoid debt, build wealth, and make informed financial decisions for life. That’s the power of early education.
Final Thoughts From a Daily Money Manager
I’ve seen what happens when people don’t learn about money until it’s too late.
I’ve helped seniors sort through decades of financial paperwork, and I’ve comforted adult children overwhelmed by their parents’ financial chaos.
These experiences fuel my passion for prevention.
Teaching your children about finances isn’t just about preparing them for adulthood—it’s about giving them confidence, resilience, and freedom. It’s one of the greatest gifts you can give.
So start today. Start small. And know that you’re not alone. At Advocate Money Management, we believe in empowering families—one conversation at a time.
Check Out These Related Resources
- How To Create A Balanced Budget: Childhood Lessons
- How Credit Scores Work: Understanding and Improving Your Credit
- Why Don’t I Have Enough Money?: The Importance Of Timing In A Budget
- Saving For College: 10 Benefits of a 529 Plan
- Advocate Money Management Budgeting Services
Don’t forget to bookmark our Money Morsels blog and check back regularly for more information to help you be successful!
