Teaching Kids About Money: Why Your Everyday Actions Matter
How often do your kids see you pay bills, talk about savings, or discuss what things cost?
As parents, your habits around money don’t just affect you—they set an example that shapes how your kids view finances, potentially for life. Kids learn a lot by watching, and that’s especially true when it comes to money. But according to recent surveys, only 23% of kids say they talk to their parents frequently about money, which means the majority of kids aren’t getting enough financial guidance from home. And the impact shows. Financial literacy rates are lowest among younger generations—only 38% of Gen Z and 45% of Millennials could answer basic questions about managing money.
1. Start With Open Conversations About Budgeting and Spending
Kids won’t naturally pick up money skills without seeing them in action. Everyday moments—like deciding on what to buy at the grocery store or setting a limit for family activities—are chances to model budgeting choices. Instead of simply saying “we can’t afford that,” try explaining why you’re prioritizing one thing over another. These small conversations can help kids understand why budgeting matters and the choices it involves.
The reality is that financial illiteracy is costing Americans on a large scale; in 2023 alone, it added up to $388 billion in losses. That’s a serious consequence of people not understanding basic financial principles. By showing kids these day-to-day budgeting choices, you’re giving them tools to avoid common financial pitfalls and make smart choices as they grow up.
2. Involve Kids in Saving for Goals and Planning Ahead
Kids and teens are facing financial worries at higher rates. Over half of teens (54%) are concerned about how they’ll manage to finance their future. And as education costs rise, 69% of teens say those costs have made them reconsider their schooling options after high school. The pressure is there, and helping them learn how to save and plan for goals can ease some of it.
When kids are involved in setting savings goals, even for something small like a toy or a game, they start to see how saving up for something can lead to a reward. This also lays the groundwork for future goals like a car, college, or other major expenses. By making saving a family activity, you’re teaching them that big goals require planning and consistency, skills that will make them feel more secure as they face financial decisions later on.
3. Discuss Credit, Loans, and Debt Responsibly
Talking about credit and debt can be challenging, but it’s necessary. A large number of teens—39%—say they would feel more confident about their future if they had a better understanding of how student loans work. Given that many students will consider taking on debt for college, helping them understand how borrowing works now can make a difference in how they approach it responsibly.
This is a chance to explain that credit isn’t “free money” and that taking on debt means a commitment to paying it back, often with interest. By talking openly about credit cards, student loans, and other debts, you’re setting them up with the awareness they’ll need to make wise choices, avoiding pitfalls that many young adults fall into because they weren’t prepared.
Set the Example—They’re Watching
Your financial choices are the blueprint your children will use as they grow up. The lack of financial literacy among young people today is a major concern, but it’s one that can be addressed through small, consistent efforts at home. By talking about money openly, demonstrating budgeting decisions, and encouraging a habit of saving, you’re helping your kids develop the skills they need to handle their finances with confidence. Every conversation and action you share now builds their foundation for sound financial habits. At Nuvision Credit Union, we’re here to support your family’s financial journey with resources, guidance, and tools to make financial literacy a part of the life you build.
