Engaging Your Kids in Financial Decisions: Starting the Conversation
- Nelson Greene, CFP®
- Apr 2
- 4 min read
Getting your kids involved in financial decisions can feel challenging, especially if you’re unsure where to begin. Many parents wonder how to introduce money topics without overwhelming their children or sparking disinterest. The key is to start with what your kids already know or have encountered about money, then build from there. This approach helps you connect with their current understanding and interests, making financial conversations more natural and effective.
Understand Your Child’s Current Exposure to Financial Ideas
Before diving into detailed discussions about budgets, saving, or investing, find out what your kids already know or have seen about money. Many young people today get financial advice from social media platforms like TikTok, Instagram, or YouTube. These platforms feature influencers who talk about saving, budgeting, investing, and even entrepreneurship.
You can start by asking simple questions such as:
Have you seen any videos or posts about money recently?
Are there any channels or influencers you follow who talk about finances?
What do you think about the financial tips you’ve come across?
This helps you gauge their interest and the accuracy of the information they’ve absorbed. It also opens the door to correcting any misconceptions and sharing your own values around money.
Tailor the Conversation to Their Age and Interest Level
Kids’ understanding of money grows with age, so your approach should match their developmental stage and curiosity.
Young children (5-10 years): Focus on basic concepts like saving, spending, and sharing. Use real-life examples such as managing an allowance or saving for a toy.
Preteens (11-13 years): Introduce ideas about budgeting, needs versus wants, and the value of earning money through chores or small jobs.
Teenagers (14-18 years): Discuss more complex topics like bank accounts, credit cards, student loans, and investing. Encourage them to manage part of their own money.
By aligning your conversations with their level of understanding, you keep them engaged and avoid overwhelming them with too much information at once.
Use Everyday Moments to Teach Financial Skills
Financial lessons don’t have to come from formal talks. Everyday situations provide excellent opportunities to involve your kids in money decisions:
Grocery shopping: Show them how to compare prices, use coupons, or stick to a budget.
Planning family outings: Discuss how to allocate money for tickets, food, and transportation.
Paying bills: Explain what bills are and why timely payments matter.
Saving goals: Help them set a goal for something they want and track progress together.
These practical experiences make money management real and relatable.
Encourage Questions and Open Dialogue
Creating a safe space for your kids to ask questions about money is crucial. They might feel shy or unsure about financial topics, especially if they think money is a sensitive subject. Let them know it’s okay to be curious and that no question is too small or silly.
You can say things like:
“I’m happy to talk about money anytime you want.”
“It’s normal to have questions about how money works.”
“Let’s figure out the answers together.”
This openness builds trust and helps your kids develop confidence in handling financial matters.
Share Your Own Experiences and Mistakes
Kids learn a lot from stories. Sharing your own experiences with money, including mistakes you’ve made, can make financial lessons more relatable and less intimidating. For example, you might talk about a time you overspent and how you fixed it or a saving habit that helped you reach a goal.
This approach shows that managing money is a skill everyone works on and that it’s okay to learn from errors.
Introduce Tools and Resources That Fit Their Interests
If your kids are interested in social media or technology, use that to your advantage. There are many apps and online tools designed to teach financial literacy in fun and interactive ways. Some examples include:
Budgeting apps for teens that track spending and saving.
Games that simulate investing or money management.
YouTube channels or podcasts that explain money topics in simple terms.
Encouraging your kids to explore these resources can deepen their understanding and keep them engaged.
Set Family Financial Goals Together
Involving your kids in setting family financial goals helps them see the bigger picture and understand the importance of planning. Whether it’s saving for a vacation, a new appliance, or holiday gifts, working on goals as a family teaches teamwork and responsibility.
You can:
Discuss the goal and why it matters.
Break down the steps needed to reach it.
Assign roles or contributions for each family member.
Track progress visibly, like on a chart or app.
This shared effort makes money management a collective experience.
Nelson Greene, CFP®
Highline Private Wealth, LLC (“Highline”) is a Registered Investment Adviser.
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