Why Talk to Children About Money?

By Connie L. Oakes | Oakes Tax Service, LLC and Financial Solutions

Talking to children about money is one of the most important conversations parents, grandparents, and family elders can have. These discussions don’t just shape spending habits—they lay the foundation for a lifetime of financial well-being.

💬 Start Early, Talk Often

Research shows that ongoing, age-appropriate conversations about earning, saving, investing, sharing, and spending are crucial. The earlier you start, the more opportunities you’ll have to create personal, teachable moments that convey key financial concepts in a way that sticks.

Whether it’s explaining the value of saving birthday money or helping a teen understand how credit works, these moments build a strong financial mindset that can last a lifetime—and even be passed on to future generations.

📉 The Financial Literacy Gap

Statistics reveal a concerning gap in financial preparedness among young adults. For example:

  • 75% of teenagers lack confidence in their understanding of personal finance
  • Over 30% cannot explain the difference between credit and debit cards

This lack of early financial education leaves many young adults ill-equipped to handle their finances effectively, often leading to debt, poor credit, and financial stress.

📈 A Progressive Approach: Ages 6 to 24

Financial education shouldn’t be a one-time conversation—it should evolve as children grow. By addressing financial topics progressively from ages 6 through 24, you can help prepare the rising generation to navigate the complexities of financial independence with confidence and competence.

Here’s how you can tailor financial conversations by age:

  • Ages 6–10: Introduce basic concepts like saving, spending, and sharing
  • Ages 11–14: Talk about budgeting, needs vs. wants, and goal-setting
  • Ages 15–18: Discuss credit, banking, and earning money
  • Ages 19–24: Dive into investing, taxes, debt management, and financial planning

💡 Final Thoughts

Money conversations are more than financial lessons—they’re life lessons. At Oakes Tax Service, we believe that financial literacy is the key to building a debt-free future. By starting early and staying consistent, you can empower your children to make smart, confident financial decisions that will serve them for years to come.