Look, we’re all out here googling “how to talk to kids about money” at 11 PM after our five-year-old asks why we can’t just “use the card” to buy everything they want. If that’s you, take a breath. You’re not alone. According to Victor Wang, CEO of Stockpile and finance expert, 82% of parents are scared to talk to their kids about money.
But here’s the thing: avoiding the conversation doesn’t make it go away. “With money, as with any tough topic, when we stay silent, kids fill the gap with advice from friends or social media,” Wang explains. And while we love a good TikTok as much as the next person, maybe we don’t want it to be our kid’s primary financial advisor.
Wang puts it perfectly: “You, as a parent, should be your kids’ first money influencer.” So let’s talk about how to actually make that happen, even if your own relationship with money is complicated.
The myths keeping us silent
Before we dive into the how, let’s address the misconceptions that keep us from having these conversations in the first place.
“My kid’s too young to understand.” Wang debunks this immediately. “By age 3, kids can grasp simple trade-offs like ‘We give coins and get a cookie back’ and cause-and-effect,” he explains. You can start money lessons earlier than you think.
“Talking about money will make them materialistic.” Actually, the opposite is true. “Silence makes money feel mysterious and status-driven. Open conversations about budgets, saving versus spending, needs versus wants, and even giving teach values, not vanity,” Wang argues.
“They’ll learn this all at school.” Sure, more schools are teaching personal finance, but programs differ wildly and most don’t cover day-to-day decisions or the emotions around money. Your modeling and family discussions? That’s the real curriculum.
“To learn about money, you need a lot of money.” Nope. Kids can learn about investing with as little as $5. “Starting small builds consistency, confidence, and the habit of saving and investing over time,” Wang says. “You can think about it like learning to play soccer. A pro-level training pitch isn’t needed, just a ball and a little open space is enough to pick up the basics you can build on.”
Now that we’ve cleared those hurdles, here are the five strategies that actually work.
1. Start the conversation early (like, really early)
We’re talking about money the same way we talk about sharing toys or saying please: early and often. “Start as soon as your kid begins noticing the world around them,” Wang says. “Treat money skills like other early lessons.”
For a 3-year-old: Wang suggests keeping it “concrete and hands-on.” Let them hand cash to the cashier or routinely put coins in a clear jar they can watch fill up. Use simple language like “We’re saving these coins for ice cream later” to show what money is and what it can do.
For a 10-year-old: According to Wang, “Introduce the idea of saving versus spending and even investing. Use their allowance to practice budgeting and decision-making. Spend a little on boba tea now and save for a bigger goal in the future. This shows them their role in managing their own money.” When they’re ready, Wang suggests explaining investing as a natural extension of saving: “When you buy a share of a company, you’re giving that business money to grow, and in return, your money has the chance to grow too.”
2. Make saving and investing a habit
Wang compares building money habits to brushing teeth. “Routinely putting money away builds financial muscles like brushing teeth builds hygiene muscles,” he explains.
Preschooler: Drop a coin in a clear jar each day so they can watch it fill over time.
Elementary schooler: Have them regularly set aside part of their weekly allowance for saving or investing.
Tween: Use age-appropriate apps to cement habits, like setting automatic transfers toward saving and investing. (Yes, automating good habits absolutely counts as good parenting.)
The beauty of starting early is that by the time they’re adults, managing money won’t feel like some intimidating skill they suddenly have to master. It’ll just be what they do.
3. Let kids make choices (and mistakes)
This one’s hard because we want to protect our kids from every bad decision. But Wang insists that giving kids ownership over their money—whether it’s allowance or birthday cash—helps them develop curiosity, confidence, and accountability.
Preschooler: Use saved coins for a small treat like a sticker, snack, or coin-op ride.
Elementary schooler: Let them decide how much to save or what stock to invest in.
Tween: Have them compare companies to invest in and track results together monthly.
Will they sometimes choose poorly? Absolutely. Will they learn more from blowing their entire allowance on temporary tattoos than from any lecture we could give? Also yes.
The allowance question
Wang recommends giving kids an allowance and using a hybrid approach: “Tie part of it to chores to connect effort with earning, but also give a predictable amount to help mirror adult life where we get a steady paycheck.”
From there, teach them the “save, invest, spend” framework. A good starting point? 20% save, 10% invest, 70% spend. “It’s a great system they’ll carry for life,” Wang notes. Apps can help make this automatic, turning good intentions into lasting habits.
What about birthday money or cash gifts? Run it through the same framework. “This helps them establish a consistent approach, no matter where their cash comes from or how big an amount they get,” Wang says. They can tweak the percentages for windfalls, but keeping the overall structure teaches consistency.
4. Frame lessons in their world
Here’s where it gets fun. Instead of droning on about abstract financial concepts, connect money to things your kids actually care about.
“If they play Minecraft, explain that Microsoft owns it and that owning Microsoft stock means owning a piece of the company behind their favorite game,” Wang suggests. Suddenly, investing isn’t boring. It’s about their favorite things.
Preschooler: Compare seeds sprouting to money growing over time.
Elementary schooler: Begin with brands they know like Disney or LEGO to explain ownership.
Tween: Show historical growth of the S&P 500 and point out brands and companies they might recognize.
It’s all about making financial concepts stick by tying them to their actual lives.
5. Involve them in family money decisions
Age-appropriate involvement is key here. Your four-year-old doesn’t need to stress about mortgage payments, but they can absolutely help you plan the family “treat day” budget or compare prices on new sneakers.
Elementary schooler: Ask for input on expenses tangible to them, like which restaurant to eat at this weekend or which streaming service to subscribe to.
Tween: Plan a trip budget as a family and discuss trade-offs together. Talk about costs depending on season and distance, flight versus road trip.
Older kids can handle bigger conversations too. “We’re saving for a new car, so we’re skipping phone upgrades this year” teaches trade-offs without inducing panic. Wang emphasizes framing these discussions positively: “Inclusion should match maturity. Young kids don’t need to hear about debt or stress, but older kids can understand more complex trade-offs.” When done right, these talks teach management and problem-solving, not fear.
What if you don’t feel financially confident yourself?
Here’s where Wang offers some of the most reassuring advice for those of us still figuring out our own finances. “Remember that you don’t need to be an expert; you can learn together.”
Think of it like teaching your kid to make scrambled eggs when you’re not exactly Gordon Ramsay. You find a recipe video and follow it together. “Do the same with money: try an app made for investing as a family, like Stockpile. Together you can research companies, decide what to invest in, and track your progress.”
“Sharing your own learning process models resilience and curiosity,” Wang notes. “It shows your kid that confidence isn’t about having it all figured out; it’s about being willing to learn, try, and adapt.”
This might actually be the most important message of all. Your kids don’t need you to be a finance guru. They need you to show them that money is something everyone can learn about and manage, that it’s okay to make mistakes, and that financial confidence comes from practice, not perfection.
Start small, start today
Feeling overwhelmed? Wang’s advice is simple: “Start one small money conversation today. At the store, point out prices of cereal and compare several against each other. At home, share a thing or experience you’re saving for and why. That one discussion breaks the silence that can set everything else in motion.”
Because ultimately, raising financially confident kids isn’t about being perfect with money yourself. It’s about treating money as a normal life skill, talking about it openly, and teaching your kids that they have the power to make smart choices with it.
As Wang puts it: “It’s no different to raising emotionally or academically strong kids: teach lessons and build habits early, talk about your values and expectations often, model the behavior you want to see, and celebrate the wins while learning from the losses. Most of all, help kids see money as a tool, not a mystery or stressor.”
Financial confidence tomorrow can start with a cereal aisle discussion today. Even if we’re all still figuring it out as we go.