Talking to your kids about money can feel like a big responsibility, especially if you don’t feel like you’ve always made the best financial choices. But here’s the good news: you don’t need to be perfect to teach your kids valuable lessons about money. In fact, sharing your own money mistakes can make these conversations even more meaningful—especially for older kids, who are learning that life isn’t always about getting it right the first time.

Here’s how to make money conversations relatable and age-appropriate for young children, tweens, and teens, along with tips for sharing both your successes and stumbles.

For Young Children (Ages 3-8): Building Awareness

At this age, kids are just beginning to understand basic money concepts. Focus on simple, positive stories that teach foundational ideas like saving, spending, and earning.

• Story Idea: Compare saving money to planting seeds that grow over time, just like a garden.
• Conversation Starters:
  • “When I was little, I saved up my allowance to buy my favorite toy. What would you save for if you could?”
  • “What do you think it means to use money wisely?”

Stories You Can Share:

• The first time you earned money (like from chores or lemonade stands)
• A time you saved up for something special and how it felt when you finally got it
• A funny story about not understanding money as a kid (like thinking ATMs give out free money!)

Pro Tip: Use visual tools like jars labeled “Spend,” “Save,” and “Share” to help kids see how they can divide their money into goals.

For Tweens (Ages 9-12): Introducing Responsibility

Tweens are starting to grasp more complex ideas, like budgeting and the difference between needs and wants. This is a great time to talk about real-life examples—both good and bad—to show them how money decisions have consequences.

• Story Idea: Share a time you had to make a tough decision between two things you wanted and what you chose.
• Conversation Starters:
  • “When I was your age, I didn’t understand how quickly money could disappear when I spent it on small things. Have you ever spent money and later wished you’d saved it?”
  • “What’s something you really want right now? How do you think you could save up for it?”

Stories You Can Share:

• How you budgeted your allowance as a kid—or how you didn’t, and what happened
• A time you wanted something but realized it wasn’t worth the cost
• A mistake you made, like spending all your money too fast, and how you learned from it

Pro Tip: Let tweens practice making decisions by giving them small responsibilities, like planning part of a family outing or managing a weekly allowance.

For Teens (Ages 13-18): Preparing for Independence

Teens are ready to hear the full picture, including your financial struggles. Sharing mistakes you’ve made—like overspending, not saving enough, or making impulse purchases—can help them see that everyone has to learn. It also shows them it’s okay to stumble as long as you grow from it.

• Story Idea: Talk about the first big financial mistake you made, like going into debt or buying something you regretted, and what you learned from it.
• Conversation Starters:
  • “When I got my first credit card, I didn’t realize how fast interest added up. What do you think are the risks of using a credit card?”
  • “If you had $100 from a summer job, how much would you save, spend, and set aside for something bigger?”

Stories You Can Share:

• The time you spent more than you had and what it taught you
• How you navigated your first paycheck, taxes, or a budgeting challenge
• A money goal you didn’t reach and how it motivated you to do better

Pro Tip: Give teens a chance to manage their own budgets for things like clothes or entertainment. If they overspend, let them feel the natural consequences—it’s a safe way to learn before they’re on their own.

More Ideas for Sharing Your Own Financial Experiences

Here are some stories and memories you might want to share with your kids to spark meaningful conversations:

• The first time you earned money and how you felt about it
• A financial lesson your parents or grandparents taught you
• A smart financial decision you made and how it paid off
• A time you made a money mistake and what you learned from it
• How you saved for something special as a child, like a bike or a trip
• Challenges your family faced and how they shaped your views on money

Sharing Mistakes: Why It’s Important

It’s tempting to only share your financial wins, but talking about your mistakes is just as valuable. Here’s why:

• It Makes You Relatable: Kids—especially teens—appreciate honesty. Hearing that you’ve made mistakes helps them see that nobody’s perfect.
• It Teaches Growth: Showing how you learned from a financial misstep gives your kids a model for handling their own challenges.
• It Opens the Door: Sharing your mistakes encourages your kids to ask questions and be open about their own money worries.

Make It a Family Habit

You don’t need a formal sit-down to talk about money. Use everyday moments, like family dinners or car rides, to spark conversations:

• Dinner Table Question: “Some families have to spend their money on important things like food and bills, so they might not have extra for fun things. How do you think we can include friends who might not be able to spend money on extras, like going out to eat or buying a new toy?”
• Car Ride Conversation: “What do you think I learned when I accidentally spent all my money on something I didn’t need?”

The more you normalize these talks, the more comfortable your kids will be asking questions and learning from your experiences. Have a suggested Dinner Table Question that will help other parents get the money talks started? Please share in the comments!

The growing gift Perspective

At growing gift, we know that financial literacy isn’t about being perfect—it’s about being honest, open, and willing to learn. By sharing your own experiences, both good and bad, you teach your kids that money is a tool they can learn to use wisely. Together, you’re building the foundation for a lifetime of financial confidence.

What’s one financial mistake or lesson you’d share with your kids? Let us know in the comments!