After surveying over 3,000 people across the country in 2024, Relationships Australia found that the number one challenge people faced in their relationships was the cost of living.
Recently, more parents and families have been reaching out to us to learn how they can have healthy money conversations with their children. Importantly, it’s not to cause worry but to help shape a positive relationship with money.
We spoke with Terrie, one of our Child Consultants, for her advice on how to get started.
Why should you talk to your kids about finances?
Research shows that children who receive “financial education” from their parents or caregivers more frequently engage in healthier financial behaviour later in life. The study interviewed over 400 young adults, asking what they were taught by their families about finances, including managing debt, credit cards, and budgeting.
As demonstrated in the research, “financial education” doesn’t have to be complex (like how compound interest works) but key basics that come up in everyday life.
At what age should you start discussing money with your child?
According to Terrie, there’s no “perfect” age to start money conversations, and you can tailor it based on how much they understand.
“Regardless of age, children will always benefit from getting some information but require reassurance from their parents, so they do not worry,” she says.
It’s often a convenient time to begin talking about money when kids go to school and learn basic math skills.
Before you kick off any conversations, it’s a good idea to get on the same page as your partner/co-parent/family members, as everybody has their own experience, values, and beliefs with money.
How do you bring up money?
Terrie says an easy place for parents and families to start is everyday expenses their children are aware of. Often, these might be things that directly affect them – costs associated with school and extracurricular activities, like uniforms, sports gear, or music lessons.
She recommends using language around managing a budget to meet essential needs.
“Parents can talk about the difference between wants versus needs in households and prioritising needs,” Terrie suggests.
Parents and families could also try:
- Using money jars as a means of saving for a new toy or device
- Waying up the pros and cons of saving money and having money for a rainy day
- Understanding how credit cards work, especially that the money has to be paid back in the future
If parents are facing serious money troubles, should they tell their kids?
Again, Terrie says this depends on the children’s age – older kids will be able to better comprehend financial pressures than younger ones.
Importantly, even if families are experiencing issues, they should also be able to speak confidently about money and provide hope for the future.
“Stay positive and reassure your child that you have a plan and are taking steps to work on the issue,” Terrie advises. This might look like getting a different job, taking on additional work, or spending less.
However, it’s also okay to emphasise that this occasionally happens in families, and you might need to make some changes in spending while you find a solution.
How do you handle children comparing themselves to others, especially if they feel like they’re ‘missing out’?
While many families are feeling the brunt of the cost of living, we’re also facing unprecedented challenges with people (kids and adults!) expecting new, high-quality items. Terms like “Sephora tweens” have now become commonplace, with adolescents the target of luxury product marketing.
Unfortunately, some children will face bullying or social stigmas if they’re unable to “keep up” with their peers.
In these cases, Terrie says parents shouldn’t back away from tackling these topics head on.
“Shame can be a barrier to having conversations about money and cause parents to withdraw from conversations with their children – parents should be open to discussing their children’s concerns and fears.”
She says it’s good to focus on their questions and evaluate wants versus needs.
For example, while kids might want to go away on overseas holidays (and see pictures of their friends doing that), you can discuss other ways of spending time together as a family. It always helps to get their buy-in by asking for their ideas, like going camping instead of paying for a hotel or having regular family nights where you cook, play games, or watch movies together.
We know it’s not easy, and these conversations are continual instead of one-offs. You don’t have to navigate them alone; if you want to encourage open conversations as a family, we can support you.
We offer Adolescent Family Counselling for kids aged 10 to 21 that provides practical tools to help all family members better understand and relate to each other.
Related Services & Workshops
Counselling.Families.Life Transition
Family Counselling
Our trained and compassionate family therapists provide Family Counselling services online and in-person throughout NSW. Family Counselling provides a safe space to address problems, hear each other’s perspectives, overcome difficulties, improve communication, and restore and strengthen relationships.
Counselling.Families.Mental Health
Adolescent Family Counselling
The teenage years can feel like an emotional minefield – and knowing how to support an adolescent can seem equally as daunting. Adolescent Family Counselling aims to restore and repair relationships by providing strategies to support teens and their families through significant life changes.
Group Workshops.Families.Parenting
Tuning in to Kids
This program helps parents and carers of children 12 and under ‘tune in’ and improve communication and connection with their kids. Practical tools help you build emotional intelligence in your child and manage challenging behaviour.
English (UK) 
العربية 
简体中文 
香港中文 
Ελληνικά 
Italiano 
한국어 
ਪੰਜਾਬੀ 
Српски језик 
ไทย 
Tiếng Việt 
Facebook
Twitter
Linkedin
Email