How to Talk About Money with Your Kids

Money can be one of the trickiest subjects to discuss with children—especially when they’re teenagers or young adults. By the time your kids are in their late teens or early twenties, they are starting to make real financial decisions: opening bank accounts, managing part-time or full-time wages, paying bills, or even thinking about saving for a car or study. Yet many parents over 50 hesitate to have these conversations, worrying they’ll come across as preachy or invasive. The good news is thoughtful, practical discussions about money at this stage can equip your children with skills that last a lifetime.

Start by Sharing Your Experiences

Acknowledge the gap in experience. Most young adults haven’t had the years you have to make mistakes, learn from them, and understand the consequences of financial decisions. Position yourself as a guide rather than an enforcer. Instead of telling them exactly what to do, share your experiences—both successes and mistakes. Talking about how you handled budgeting, investing, or unexpected expenses makes the lessons relatable and memorable.

Focus on Practical Topics

Young adults respond best to tangible, real-life situations. Discuss things like managing credit cards, understanding interest rates on loans, and the importance of paying bills on time. If they’re studying or working, talk through how to budget monthly expenses, plan for irregular costs, and even save a small percentage of income regularly. Examples drawn from your own life—how you planned for a big purchase or handled a financial hiccup—can make these lessons stick.

Saving and Investing

Many older parents worry about starting this conversation too late, but it’s never too late to help your children understand the value of putting money aside, even in small amounts. Talk about different types of savings accounts, emergency funds, KiwiSaver contributions, and the basics of investing. Explain how starting early, even with modest contributions, can have a significant long-term impact due to compounding interest. You don’t need to cover every detail, but introducing the concepts prepares them for bigger financial decisions.

Understanding Debt

Debt is another key topic, particularly student loans, personal loans, or credit card debt. Help them understand the difference between “good” and “bad” debt, the implications of interest, and strategies for paying it down efficiently. Share strategies that worked for you, such as prioritising high-interest debt first or making consistent small repayments. These insights can prevent common financial mistakes which are often costly and stressful.

Encouraging Financial Independence

For older children or young adults, discussions about financial independence are crucial. This might include setting up their own bank accounts, learning to pay rent or household bills, or understanding the value of insurance. Encouraging them to take responsibility for certain financial aspects of their life allows them to build confidence while still having your guidance available when needed.

Keep the Conversation Open

Create a safe space where your children feel comfortable asking questions about money without fear of judgment. Some families find it helpful to schedule regular “money talks,” while others prefer a more casual approach, bringing up topics as real-life situations arise. The goal is to normalise these conversations so your children see money management as a normal, ongoing part of adult life.

Talk About Values and Priorities

Money isn’t just about numbers; it’s about choices and what matters to your family. Talk about how you balance spending, saving, and giving, and invite your children to think about their own priorities. These conversations can help them understand financial decisions aren’t purely technical—they’re personal, too.

Lead by Example

Modelling good financial behaviour is as important as talking about it. Your children notice how you handle everyday money matters: budgeting, paying bills on time, discussing purchases with a partner, or even comparing prices. Demonstrating these habits reinforces the lessons you share verbally and gives them a real-life example to emulate.

Seek Professional Guidance When Needed

A financial advisor can help your children understand the bigger picture, particularly around investments, savings, and retirement planning. Even a brief session with a trusted advisor can provide reassurance and expert advice that complements your own guidance.

A Conversation That Lasts a Lifetime

Talking about money with your kids as they move into adulthood isn’t a single conversation—it’s a series of discussions, shared experiences, and opportunities to guide them through real-life situations. By approaching these talks with openness, honesty, and practical examples, you give your children not just financial knowledge, but confidence and independence to serve them for years to come.