How Much Should You Share With Your Kids About Your Finances?
How Much Should You Share With Your Kids About Your Finances? Experts Weigh In
Nicole Spector Wed, June 25, 2025 GOBankingRates
Most of us were raised without any formal education in personal finance. This alone can hold us back. But for many of us, it’s worse than that — we didn’t have much of an understanding of what was going on with money in our own homes while we were growing up. Maybe we sensed, or were told, that the money situation at home was “bad” or “good” or “stressful.” But that’s not education — that’s emotion.
Now, as parents, we want our children to have it better than we did. That means equipping them with the right tools to navigate the world of personal finance when they’re older. So what, exactly, should we share with our kids about our finances?
Your Money Values
“The first place my mind goes when thinking about your question is, share your money values,” said Brian Lawrence, partner and financial advisor at North Ridge Wealth Advisors. “Teaching values can start at a young age and last until they leave for college, or whatever the next step might be after high school.”
Consider the everyday — or even once-a-year — things you do with money that reflect your financial values. “The conversations can be as simple as saying, ‘We are a family that pays our bills on time’; ‘Our family doesn’t buy unnecessary things’; or ‘This family saves money so we can buy things that really matter, or go on special trips,'” Lawrence said. “The list is endless. And discussion should be welcome to help children understand ‘Why.'”
How Money Grows
Victor Wang, CEO at Stockpile, pointed out that many of us tell our kids, “Money doesn’t grow on trees,” but stop there. We should go further and show them where and how money does grow.
“Introducing concepts like compound interest and investing can help them understand the value of patience and long-term thinking,” Wang said. “You can start by explaining that when you invest money, it doesn’t just sit there. It can grow over time because the money you earn, through returns or dividends, can help you earn even more. Using simple examples or visual aids, like a chart or an online calculator, can make this concept clear and engaging for kids.”
Wang encouraged taking it a step further by showing your kids how you invest — whether through a retirement account or investing app.
“When kids see that investing is something you do little by little over time — not a one-off thing or some big gamble — they start to see that growing money is about patience and sticking with it,” he said. “Encouraging them to start small, maybe by saving part of their allowance or birthday money, and watching it grow bit by bit can help them feel excited and confident about handling their own money down the road.”
Your Relationship Between Work and Earnings
Kids, especially those too young to get summer jobs, may not clearly connect the dots about how their needs or wants are fulfilled by your income. You shouldn’t hold your hard work over their heads, but you should open a conversation about the concept of earning money by working.
TO READ MORE: https://www.yahoo.com/lifestyle/articles/much-share-kids-finances-experts-131606912.html