Money is an integral part of our lives, yet it remains one of the last taboos in many families. As parents, we are comfortable talking about school, career ambitions, and family vacation plans, but financial discussions are often avoided.
According to a T. Rowe Price survey in 2021, “83 percent of parents with children under the age of 18 believe it is important to teach their kids about money, but only 4 in 10 parents (41 percent) have regular money conversations with their children.” Avoiding money talks creates a gap in our children’s knowledge, confidence, and ability to successfully enter and navigate adulthood.
A 2022 study from NFEC determined that “only 24 percent of young adults feel very confident in their ability to manage their finances.” In an age where financial security feels more tenuous than ever, normalizing money conversations is essential — not just for today, but to empower the next generation with the tools they need for the future.
The Impact of Silence: Why Parents Avoid Money Talks
Many parents shy away from discussing finances for several reasons. Some worry that such talks might burden children with adult concerns, while others feel unsure about their own financial knowledge or have cultural or personal discomfort around the topic. Growing up, we always had just enough, and money was something we carefully managed but rarely discussed openly. That experience left me feeling cautious and uncertain about finances.
Now, as a parent, I want my kids to feel secure and confident with money, understanding it as a tool rather than an emotional topic. In my work, I find that family is the strongest source of money influence on a person and significantly shapes each person’s unique money story. As parents, we have the opportunity to shape the next generation’s story about money, but it cannot be done without regular, healthy money conversations.
When we avoid money conversations, we leave children to form their own, often misguided, beliefs about money, which can influence their future financial decisions and sense of security.
Yet, it doesn’t have to be this way. We don’t need to dive into the stock market or reveal every financial detail to our kids; instead, we can start small by focusing on principles, healthy money habits, and values-driven decision making.
How to Get Started: Making Money Conversations a Family Tradition
Introducing financial topics early — and as a normal part of family life — can instill confidence, curiosity, and a sense of responsibility. Here are three essential money questions that can spark meaningful, age-appropriate conversations with your kids.
What is Money?
It may sound simple, but defining what money really is — both practically and philosophically — can shape a child’s understanding for years to come. Explain that money is a tool for exchange, similar to a unit of time or energy. Money can be earned, saved, or spent. Just like time and attention, it is a valuable resource to be treated wisely. Help them understand that money itself isn’t “good” or “bad;” it’s simply a means to an end. This clarity fosters a healthy, balanced attitude toward wealth and spending, free from guilt or attachment. For the older kids, talk about physical money as the “cost” where the “price” is an intangible value assigned by each individual person.
Where Does Money Come From?
Many children only see money as something that appears from the Bank of Mom and Dad or with a swipe of a card. Money actually comes from hard work! Help them understand that money is earned through value creation — by working, solving problems, or offering services. Share examples from your work or family contributions, and let kids share ideas for how they would like to earn money. What problem would they solve? Talk with older children about the power of compound interest and that saving and working are not the only ways to earn more money.
What Is Money For?
One of the most powerful lessons you can teach is that money is a tool for achieving goals. It is a necessary part of life and for providing the needs and wants. Kids of all ages should be able to recite that money is for saving, spending, and sharing. Younger kids understand how time is managed (five minutes until your screen time is up), and I encourage parents to talk about money in relation to specific events, such as pay day and when bills are due. For older kids, walk them through not only the “what” of a financial decision, but also the “why.” For example, explain why you save for vacations or support local causes instead of buying the latest electronics. This insight instills a sense of purpose around wealth and reminds children that money should align with values, not just desires.
Creating a Legacy of Financial Confidence
When we openly talk about money, we build a legacy of trust, transparency, and confidence. Financial conversations don’t have to be burdensome or one-sided; they can be curious, collaborative, and even fun. Imagine the benefits of children who grow up with a balanced understanding of finances — they are more likely to make sound financial choices, feel empowered to ask questions, and contribute to their own financial security and well-being as adults.
You have the power and the responsibility to break the generational money story. As parents, we want the absolute best for our kids and often justify overworking or oversaving in the name of “doing it for the kids.” Unfortunately, without the wisdom to manage wealth, passing on an inheritance is like playing the lottery. You are leaving your legacy to chance.
Generational wealth without wisdom is like playing the lottery. Don’t leave your legacy to chance.
The statistics speak for themselves: Nearly 70 percent of wealth is lost within one generation and 90 percent by the second. These numbers reflect the dangers of a financial culture that focuses on secrecy and avoidance over openness and education. By normalizing money conversations at home, we empower our children to be wise, confident, and discerning custodians of their own — and our — financial legacy.
Making the Shift: One Conversation at a Time
Let’s break the silence around money, not just for the financial literacy of our children, but for the lasting legacy of our families. Start small, encourage curiosity, and share your experiences. Talking about money isn’t just about dollars and cents; it’s about building a foundation of trust, wisdom, and resilience for the next generation.
What will be your family’s first money conversation?
