From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every Age

Younger Americans are getting a constant stream of news and information from social media — including financial and investing tips from influencers and other "experts."

But is the information they're getting credible? With this backdrop, as a parent, how do you discuss money and investing with your children while instilling a strong financial foundation?

In a new study from Ameriprise Financial, 72% of the about 3,000 parents surveyed said they personally take responsibility for teaching their children about money. Nearly all — an incredible 97% — said they talk with their kids about finances to some degree.

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Many parents actively involve their children in family financial decisions as a way to teach money values and principles beginning at a young age.

The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.

If you're wondering how to have open, honest and age-appropriate conversations with your children, here are some tips segmented by age.

Young children through pre-teens

Even young children are watching and paying attention to where you invest your time and money. While you don't have to share details of your financial situation, consider involving your children in real-life money management scenarios early on.

Communicating the reasoning behind some of your purchasing decisions or spending habits can be a powerful way to impart financial values to your children.

You might consider helping them understand why you chose one product vs another at the store ("It's very similar but less expensive"), or why you aren't buying an item right now ("We're saving up for something special").

By getting children involved, you're setting the tone that it's OK to talk about money and creating the space for them to ask questions.

When appropriate, encourage your children to use their own money to make a purchase. Allowance or birthday money provides a great opportunity to help them think about how to save, spend or give to charity.

Teenage children through college-age

Starting conversations about money early helps lay the groundwork for bigger, more complex financial topics later. As children progress through their high school years, one of the biggest questions on their minds is whether — and how much — parents plan to contribute to their college costs.

Research revealed nearly 9 in 10 parents (89%) plan to pay for some portion of their children's college education. It's natural that parents want to set their children up for success.

However, it's critical that they don't jeopardize their own financial security to make it happen.

Regardless of how much you plan to contribute, it's important to clearly communicate your decision to children so they can make informed choices about taking on student loans or finding other ways to cover the bill.

This is an exciting age, but it's also an important time to get the right financial discipline and habits in place.

When you feel the timing is appropriate, help your children apply for a credit card to begin building credit and practice responsible money management under your supervision.

It's about teaching them to make their own tradeoff decisions between their goals for today and in the future.

Adult children

The need for ongoing money conversations doesn't end when a child has left the home. Research reveals the majority of parents (75%) plan to help their adult children fund goals and milestones such as a wedding, a down payment on a home and vacations.

While well-intentioned, such generosity can put parents' financial futures at risk if it means sacrificing retirement savings or other important long-term goals.

If you do choose to contribute financially, be clear about whether the money is a gift or a loan to avoid confusion or tension down the road. It's about finding the right balance between assisting your grown children and instilling financial independence.

Additionally, a first job post-college is the perfect opportunity to discuss steps children can take to establish a strong financial foundation.

Encourage children to take advantage of every employee benefit available to them, such as applying for health, life and disability insurance and maximizing their 401(k) match to ensure they're not leaving money on the table.

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Parents may also want to discuss the risks and opportunities that come with investing, or share their own experiences with market fluctuations. A parent's candidness can help children take advantage of market volatility, rather than fearing it.

Work with a financial adviser

Parents already have a lot on their plates when it comes to raising a family, and finances can be a source of stress in the best of times, let alone during periods of market volatility.

The good news is you don't have to initiate conversations alone: A financial adviser can help.

According to the Ameriprise study, nearly 9 in 10 parents (88%) working with a financial adviser say the advice was helpful in making financial decisions related to their children. The research reveals parents are seeking guidance on:

• Considerations for leaving an inheritance (34%)
• Educating children about investing (33%)
• How to pass down their financial values to children (30%)

A financial adviser can provide direction and accountability to help you take the important financial steps needed to protect your children's futures — and your own.

The Parents & Finances research was created by Ameriprise Financial and conducted online by Artemis Strategy Group from January 3-31, 2025, among 3,010 American parents with at least one child age newborn to 30. Parents were between ages 25 to 65+ and had on average more than $500,000 in investable assets. For further information and full methodology, including verification of data that may not be published as part of this report, contact Ameriprise or go to ameriprise.com/parents.

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