As a wealth advisor I think about money every day – I would expect that most of you also think about your money daily. Even if you delegate the ‘heavy lifting’ to financial professionals, we all buy goods, look at our bank accounts, pay bills, etc.
Whether or not you find money thoughts easy, stressful, or emotional, we all have some type of relationship with our finances that started at an early age. If you think back to your earliest money memory, it probably had a lasting impact. I was told from a young age that I was a ‘spender’, and my sister was a ‘saver’. This affected how I viewed my money management skills and led to low financial self-esteem. I am happy to say that I have worked through this issue, and it is a big motivation for my career in financial planning and why I enjoy helping young people.
May 15th is the 12th annual “Talk With Our Kids About Money Day”. The Canadian Foundation for Economic Education (CFEE) asks that parents and teachers take the opportunity to spend some time talking with their kids about money to help build financial knowledge and skills.
Talking to the kids in our life about money is important. It helps them build healthy financial habits early, develop critical life skills like budgeting and saving, and understand the value of work and delayed gratification. It is important to teach our kids how to make good decisions with money, so they recognize they are in control of their finances. The philosopher Ayn Rand has great quote that says “Money is only a tool. It will take you wherever you want but it won’t replace you as the driver.”
We need to teach the children in our lives how to be good drivers. Without financial guidance, children may grow up with poor money management skills that lead to debt, stress, or lack of financial independence later in life.
Early money conversations can teach kids to:
- Make informed spending choices.
- Understand needs vs. wants.
- Set and achieve savings goals.
- Avoid common financial pitfalls.
My nieces and nephews’ range in age from 2-6 years old and I can already see them developing their understanding of money. They know what it is and that it can buy them the candy or toy they want. The six-year-old just bought himself a scooter that he saved up for over six months. He sold old toys, completed a chore chart, recycled bottles and chose to have a toonie birthday party. Instead of his friends each bringing a gift, and cluttering his room with more stuff, he got to go to the store and buy the one thing he really wanted. He is now saving up for a dirt bike ☺
Below is a breakdown of important topics to cover at different ages. The key tip for all ages is to keep it real and age appropriate. The more open and consistent the conversation, the more confident and capable kids will become with money.
The Canadian Foundation for Economic Education has a great website (https://talkwithourkidsaboutmoney.com/) with a variety of resources that cover many topics for all different ages. Liam and I are also here to support your families and are happy to talk with the young people in your life and provide guidance at any time.
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Ages 3–5 (Preschool)
Goal: Understand basic money concepts.
Use simple language: “We use money to buy things.”
Introduce choices: “You can buy this toy or save for a bigger one later.”
Model behavior: Let them see you use cash or a card and talk about what you’re doing.
Ages 6–9 (Early Elementary)
Goal: Learn about saving, spending, and earning.
Use jars or envelopes labeled Spend, Save, Give to divide allowance or money from chores.
Involve them in small purchases to teach cost and decision-making.
Talk about needs vs. wants using examples like groceries (need) vs. candy (want).
Let them earn money for age-appropriate chores to build work-money connection.
Ages 10–13 (Late Elementary to Early Middle School)
Goal: Practice managing small amounts of money.
Open a savings account with them and review the statements together.
Give them a budget for school supplies or birthday gifts and help them plan.
Talk about opportunity cost: “If you buy this video game, you won’t have enough for that outing.”
Encourage short-term savings goals (e.g., a toy or event) and track progress together.
Ages 14–18 (Teens)
Goal: Prepare for financial independence.
Teach them how to budget. Use apps or spreadsheets to track income from part-time jobs or allowances, and taxes.
Discuss credit and debt. Explain how credit cards work and the consequences of interest.
Involve them in family budget discussions where appropriate (like saving for college).
Encourage smart saving habits for longer-term goals like a car or college.