Studies show parents still aren’t talking to their kids about money. In most households, money is still treated like a taboo subject, too private, too complicated, or not relevant. But the data tells us that the earlier kids begin learning about money, the stronger their financial outcomes as adults.
A study by T. Rowe Price found that 44 percent of parents don’t discuss financial topics with their children at all. The same study also shows that children who have regular conversations about money with their parents are more likely to develop strong budgeting, saving, and investing habits.
So why the silence?
For many, money remains an emotional issue for the individual. It’s tied to their challenges related to debt, late starts, or uncertainty about whether they’re “doing it right.” They don’t feel qualified to teach their kids about finance.
That means millions of young people become adults without ever learning how credit works, what interest rates mean, how to build a budget, or how to think about retirement beyond a vague, distant concept.
That gap has consequences.
A 2022 FINRA study found that young adults with low financial literacy were significantly more likely to carry high-interest debt, pay late fees, and make only minimum payments on their credit cards. This is what frustrates me: when I see patterns that slow down progress, delay wealth-building, and limit choice later in life.
On the other hand, financial literacy, when it starts early, pays off significantly. Kids who understand how money works are more likely to build savings, avoid debt traps, and think beyond immediate gratification. They begin to realize that money isn’t just for spending, it’s a tool to create options and freedom.
This leads us to my point: It also includes how they think about retirement.
Most adults still treat retirement like a number to hit—a lump sum, a target, a finish line. However, that mindset oversimplifies what is truly at stake. In my world, we know that retirement is about creating an income stream that can support your life when your working years are behind you. It’s much more than just reaching a dollar balance.
This shift in thinking changes everything.
When we teach kids about saving and investing, it’s not about chasing wealth for its own sake; it’s about building future income. It’s about preparing for a time when their assets need to work harder than they do.
When kids hear their parents talk about budgeting, setting goals, or investing, not in abstract terms, but in the context of their own lives, it strips away the mystery. They begin to see money as something active. Something that moves. Something that requires attention and decision-making, not just accumulation.
One of my clients explained it like this: he shows his kids how a paycheck becomes a budget. That lump sum sounds like a fortune in their eyes. But then he walks them through his approach to spending — where that money goes to keep the lights on, the car gassed up, to pay for camps, etc. He explains how he’s adamant about putting a chunk of it in savings and “forgetting about it.”
He’s creating awareness through his honesty. Kids can benefit from more than just a hypothetical; they need a real one.
Financial confidence doesn’t show up by accident—it comes from exposure, repetition, and context.
As a parent, you don’t need to have all the answers, but you do need to start the conversation.