How to Talk About Money at Each Age
Helping our kids learn about money is very much a timing thing. As much we may like the idea of teaching our 7 year olds all the finer points of day trading, how and when we talk to our kids about money has a huge impact on the habits they develop.
They don’t need edit access to the family budget spreadsheet…they just need you to speak at their level.
The Rules That Applies at Every Age
Before we break this down by age, here’s the framework that works across the board:
Name the goal
Name the constraint
Name the plan
That’s it.
You’re not explaining money. You’re explaining decisions.
Everything below is just that framework, scaled to the kid in front of you. Easy peasy.
Ages 4–6: Money Is Finite
At this age, kids don’t understand budgets or income.
They understand:
“One or the other”
“Now or later”
“Yes or no”
So keep it concrete.
What that sounds like:
“We can buy one thing today.”
“If we buy this, we can’t buy that.”
“We’re saving this money for later.”
What’s less likely to work:
“It’s expensive.”
“We can’t afford it.”
“If daddy wants to retire by 65 he’s gotta put that money in Bitcoin.”
Those last three sound final to adults but feel random to kids. Especially the third one.
The goal here, again, is consistency. We’re teaching that money follows rules, not moods.
Ages 7–10: Money Has Jobs
This is when kids are ready to understand structure. Money isn’t just something you get — it has jobs.
Spend. Save. Give. Plan.
What this sounds like:
“Some money is for now. Some is for later.”
“If you want that, let’s make a plan.”
“We already spent the fun money this week.”
This is the sweet spot for allowances, simple savings goals, and letting kids feel small consequences as feedback - not punishment.
This is also when visibility starts to matter. When kids can see where money goes, the questions change.
Instead of “Why not?” You start hearing “How long until…?”
Progress made!
Ages 11–14: Money Is Trade-Offs
Middle school is where money stops being theoretical. Our kids want independence.
They want things. They’re starting to compare.
Perfect timing to introduce trade-offs.
What works here:
“If we spend more here, we spend less there.”
“You can decide — but you own the outcome.”
“That choice means waiting on this one.”
This is where many parents panic and clamp down.
Don’t.
This is where guided autonomy matters. Let them manage categories. Let them make mistakes that don’t ruin anything.
And when they do, talk through why it played out the way it did. Don’t lecture; just explain the Why behind what happened and what they can do to avoid making the same mistake again.
Ages 15–18: Money Is Real Life Practice
By high school, kids don’t need explanations. They need reps.
This is the age for:
Monthly budgets instead of weekly allowances
Covering real expenses
Managing priorities, not just purchases
What works now:
“This is your monthly amount. You run it.”
“I’ll help, but I won’t rescue.”
“Let’s review what worked and what didn’t.”
This is also when transparency matters most. Teens should understand:
What things cost
Why trade-offs exist
How adult decisions actually get made
The idea here isn’t stress them out, but to ground them. Sheltering teens from money is a first class ticket to bad money decisions in early adulthood.
The Parents Who Say “I’m Still Learning” Are Actually Doing It Right
The truth is you don’t need to have money figured out to teach it.
You just need to learn out loud.
“We’re adjusting.”
“We didn’t plan for this.”
“We’re choosing stability over impulse.”
When we do this we’re conducting real-world training that our kids will hearken back to their entire lives.
This is why shared visibility helps — whether it’s a whiteboard, a simple tracker, or apps like IDK My Money.
At the heart of it, all we parents want is to know that our kids will be okay. Forever. The best way we can do that is by being open with them about how money works, and show them how to learn from mistakes. Theirs and ours.
