How Much Should You Tell Your Kids About Your Finances?

We have four kids and the oldest is 13, which puts him firmly on the other side of middle school.

We’ve talked openly about money for years but it’s always been in abstract terms. What is investing, why you should save money, how to think about debt, etc.

But we’ve never talked about our specifics but our kids have made comments about money, wealth, houses, cars, etc. because despite not knowing our specifics, they can still see context clues. We don’t live lavishly (at least not in the obvious ways) and so our kids think we’re normal because we appear as the average of those around us.

If you don’t talk specifics, they will make assumptions and assumptions are often wrong. 😂

This post by Cameron Huddleston is great for understanding when you should talk to your kids and how much context and specifics to give them:

How Much Should You Tell Your Kids About Your Finances? [Cameron Huddleston] – “Research shows that teaching your kids about money provides all sorts of benefits, including better financial decision-making skills in adulthood and lifelong savings habits. 

However, it also can open the door to questions from your kids about your family’s finances: How much money do you make? Are we rich? Are we poor? Mom and Dad, are you saving for retirement, or am I going to have to support you? (OK, so your 8-year-old probably won’t ask that, but your 28-year-old might.)”

Also, while Cameron does provide a good framework, adjust as needed for the maturity of your children. Some kids mature faster than others and you don’t want to provide too much too soon.