Raising Financially Prepared Kids Starts With Talking About Money at Home

By Steven Bowles, CLU®

Photo by Ketut Subiyanto / Pexels

Most parents spend years teaching their kids how to navigate life. We help them learn how to communicate, regulate emotions, and make thoughtful decisions. We teach them how to share, how to wait their turn, and how to think ahead. We model responsibility in countless small ways, often without realizing it.

But when it comes to money, many families fall silent.

Bills get paid quietly. Financial decisions happen behind closed doors. Questions about money are brushed aside or answered vaguely. Parents usually have good reasons. They want to protect their kids from stress. They don’t want to burden them with adult worries. Some fear that talking about money could lead to entitlement or pressure.

Yet over time, that silence sends its own message.

Silence doesn’t teach confidence.

At Catalyst Advisory, we recently surveyed 1,000 American adults and found that only 14% have had detailed conversations about inheritance with their families. Nearly half (47%) say they’re uncomfortable talking about money at home. That discomfort doesn’t suddenly appear in adulthood. It’s often shaped early, in households where money was treated as off-limits.

If we want to raise financially prepared kids, the groundwork must start at home. And it starts with everyday conversations that make money feel understandable instead of intimidating.

Why Money Still Feels Off-Limits in Many Homes

For many parents, avoiding money conversations feels like the safest choice. Money is tied to stress for a lot of families. It represents security, fear, and sometimes past mistakes. Parents may worry that discussing finances will make kids anxious or cause them to worry about things they shouldn’t have to think about yet.

There’s also a generational factor. Many parents today were raised in households where money simply wasn’t discussed. Finances were private. Sometimes they were tense. Often they were invisible. Those patterns tend to carry forward, even when parents don’t consciously intend them to.

Confidence also plays a role. Parents don’t always feel equipped to teach about money because they don’t see themselves as experts. They may feel unsure about their own decisions or worry about saying the wrong thing. It can feel easier to avoid the topic entirely than to risk an imperfect conversation.

All of this is understandable. But avoidance doesn’t make the situation better.

The discomfort with talking about money isn’t usually about math or numbers. It’s about unfamiliarity. When money isn’t discussed growing up, it becomes intimidating later.

What Kids Learn When Money Is Treated as a Taboo

Children are constantly learning, even when we’re not teaching intentionally. They notice tone changes. They sense stress. They pick up on what topics are welcome and which ones make adults uncomfortable.

When money is treated as taboo, kids learn lessons whether we intend them or not. They may learn that money causes tension. That it’s something to avoid asking about. That responsibility will show up someday without warning or preparation.

Even when money isn’t discussed openly, kids still absorb behaviors. They notice reactions to spending. They see how decisions are made, or not explained.

Research shows that younger generations, particularly Gen Z, are far less comfortable talking about money than their grandparents. In our survey, 22% of Gen Z respondents said they are “very uncomfortable” discussing money with family, compared to only 10% of Baby Boomers. That discomfort doesn’t come from lack of interest. It comes from a lack of exposure.

Financial Preparedness Is Bigger Than Budgeting

When people talk about financial literacy, they often focus on skills like budgeting, saving, or investing. Those tools are important, but financial preparedness goes much deeper than that.

Preparedness includes understanding tradeoffs, recognizing priorities, and thinking long-term. It means being able to talk through decisions and understand consequences. It also means being comfortable asking questions and admitting uncertainty.

Most parents care deeply about legacy. In fact, 91% of Americans say they would leave something behind if they had wealth. That statistic speaks to values. Parents want to help their children, not burden them.

But legacy isn’t just about what you leave behind financially. It’s about what you leave behind emotionally and practically. Preparing kids to handle responsibility with confidence is just as important as leaving them resources.

How Everyday Conversations Build Long-Term Confidence

Financial confidence doesn’t come from one big lesson or a formal sit-down conversation. It’s built through repetition and exposure.

Kids who grow up hearing everyday conversations about money tend to feel less intimidated by it later. They learn that money is something to understand, not fear. They see that decisions involve tradeoffs and that those tradeoffs can be discussed calmly.

In my work with families, I’ve seen this pattern repeatedly. Adults who feel confident around money rarely know everything. What they have is comfort. They grew up hearing decisions explained. They heard adults talk through choices out loud. Money wasn’t mysterious.

Confidence grows from familiarity, not expertise. And familiarity comes from small moments, not lectures.

What Talking About Money Looks Like at Different Ages

Talking about money doesn’t mean sharing net worth or discussing inheritance details with young kids. It means adjusting conversations to fit a child’s age and understanding.

Early Childhood

For young children, money conversations are simple and concrete. This might look like explaining why you’re waiting to buy something or why saving matters for a future goal. It can involve naming choices out loud so kids hear how decisions are made.

At this stage, kids are learning cause and effect. They don’t need details. They need context.

Elementary Age

As kids grow, conversations can expand. Allowances with a purpose can help introduce basic budgeting and prioritization. Talking about saving versus spending helps kids understand tradeoffs. Explaining the difference between needs and wants builds critical thinking.

This is also a good time to talk about goals. Not just what you’re buying, but why. These conversations don’t need to be perfect. They just need to be consistent.

Teen Years

Teenagers are ready for more nuance. This is when conversations can include bigger-picture costs, long-term planning, and independence. Discussions might involve education expenses, transportation costs, or how financial decisions affect future flexibility.

Teens benefit from being included in conversations about responsibility. Not to overwhelm them, but to prepare them. Understanding the “why” behind decisions helps them feel capable rather than controlled.

Across all ages, transparency should be appropriate, not total. Kids don’t need every number. They need explanation and consistency.

Preparing Kids for Bigger Financial Conversations Later in Life

The conversations you have at home today shape how comfortable your kids will be with money as adults. That includes larger conversations they’ll eventually face, such as managing assets, sharing responsibility, or navigating inheritance.

Our study found that nearly one in four Americans who expect to receive an inheritance have never discussed it with their families. That lack of preparation often leads to confusion and stress later in life.

When money has always been off-limits, those conversations feel overwhelming. When money has been part of everyday discussion, they feel manageable.

Comfort doesn’t eliminate difficulty, but it reduces fear. And fear is often what makes financial responsibility feel so heavy.

Common Mistakes Parents Make (and Why They’re Understandable)

Parents often worry about making mistakes when it comes to money conversations. The truth is, most mistakes come from good intentions.

Avoiding money conversations entirely is common. Only talking about money during stressful moments is another. Being overly secretive can also backfire, making money feel mysterious rather than manageable.

Another common trap is treating money as purely transactional. Kids benefit from understanding values and priorities, not just rules.

Awareness matters more than execution. Simply noticing these patterns is often enough to begin changing them.

Simple, Realistic Ways to Normalize Money Conversations

You don’t need a formal plan to start talking about money at home. Small, realistic steps make a meaningful difference.

Talking through everyday decisions helps kids understand reasoning. Explaining the “why” behind choices builds context. Sharing goals instead of numbers keeps the focus on values rather than dollars.

It’s also okay to admit uncertainty. Saying “I’m still figuring this out” models learning and problem-solving. It shows kids that money isn’t about having all the answers, but about making thoughtful decisions.

What matters most is willingness. Willingness to talk. Willingness to listen. Willingness to make money a normal topic rather than a forbidden one.

Conversation Is the Foundation of Financial Confidence

Financial preparedness doesn’t start with a calculator or a budget. It starts at home.

When families talk openly about money, kids grow up seeing it as something to understand, not fear. They learn that questions are welcome and that decisions can be discussed thoughtfully.

Parents don’t need to be perfect. They don’t need all the answers. They just need to be willing to start the conversation.

That willingness is what builds confidence, one conversation at a time.

About the Author: Steven Bowles, CLU®, is the founder of Catalyst Advisory, an independent wealth transfer advisory firm. He specializes in helping entrepreneurs, business owners, and investors navigate the complexities of legacy planning, but believes the fundamentals of good estate planning apply to every family, regardless of net worth. Steven lives outside Philadelphia with his wife and three sons.