When our children were little, we taught them how to cross the street, brush their teeth and say “please” and “thank you.” Many people started the kids doing chores and earning an allowance. We understood that those conversations were part of raising responsible adults.
Then they turned 18.
Somewhere along the way, many parents assumed that talking about money should stop because their children were now adults. Nothing could be further from the truth.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
In fact, adulthood is when the most important financial conversations begin.
The American Dream has changed
Today’s young adults are navigating a financial landscape unlike any previous generation. Student loan debt, soaring housing costs, rising insurance premiums, inflation, volatile markets and an uncertain job market have changed the traditional path to financial independence.
Many are delaying marriage, homeownership and having children — not because they lack ambition, but because the economics are dramatically different.
What does this all mean? Almost 80% of baby boomers own homes vs only 26% of Generation Zers being able to or choosing that path of homeownership.
And baby boomers are trying to ease their kids’ pain (and perhaps creating more pain for themselves) — about 50% of these parents are helping to offset money pressures for their adult children.
Things aren’t rosy for any generation
Meanwhile, older parents are facing their own financial realities. Many are working longer than expected, caring for aging parents while helping adult children and worrying whether their retirement savings will last 30 years or more.
In fact, among Americans 65 and older, about one in five is still in the labor force. And many more have odd jobs or are gig workers.
That creates a generation caught in the middle — and a lot of silence.
Silence is not golden
Silence is expensive.
I elevated the topic of teaching kids about money in the 1980s. I have taught families the lessons of finance for decades, and one truth remains constant: Families who talk openly about finances make better decisions together. Those who avoid the subject often create misunderstandings, unrealistic expectations and emotional landmines.
The goal isn’t to lecture your adult children. It’s to have a conversation between equals.
Start with your own story
Many parents hide financial struggles because they want to protect their children. Others hide financial success because they don’t want to create entitlement. Others carry the baggage from when they grew up that the biggest secrets in the household related to money issues.
None of these approaches helps. Adult children benefit from understanding how their parents made financial decisions, overcame setbacks and learned from mistakes.
Tell your offspring about the first house you couldn’t afford. The investment that didn’t work. The credit card debt you finally paid off. The promotion that changed everything. How you had to take your Social Security early to make ends meet later in life.
Money stories teach lessons that spreadsheets never can.
Be honest about your retirement
One of the biggest misconceptions adult children have is assuming Mom and Dad will always be financially available. They may quietly assume you’ll help with a home down payment, pay for grandchildren’s education or leave a substantial inheritance.
Those assumptions can create disappointment —or, worse, poor financial decisions — based on deceit.
A healthier conversation sounds like this: “We’ve worked hard to secure our retirement because we don’t ever want to become a financial burden to you.”
That’s one of the greatest gifts parents can give.
If you plan to help your children financially, explain what that help looks like. Is it a loan? A gift? A one-time opportunity?
What are the expectations? Clarity prevents conflict.
Discuss inheritance before it’s necessary
No family enjoys talking about death. But avoiding estate conversations doesn’t protect anyone.
Adult children should know:
Surprises after a death rarely strengthen families. Money issues and unclear expectations can tear a family apart. Do you really want that to be your legacy?
Set boundaries without guilt
Many parents continue financially rescuing adult children well into their 30s and 40s. Sometimes that help is appropriate. Sometimes it delays independence.
Before doling out the next pot of money, ask yourself: “Am I solving a temporary problem or creating a permanent dependency?”
Financial assistance should come with conversations, not conditions. Explain why you’re helping, how often you’re willing to help and what success looks like. Healthy boundaries strengthen relationships.
Respect your kids’ financial choices
Your adult children grew up in a different economy. They may prioritize experiences over possessions, rent instead of buy or work remotely instead of climbing a traditional corporate ladder. That doesn’t mean they are being financially irresponsible.
Instead of criticizing, ask questions:
- “What made you choose that?”
- “How does that fit into your long-term goals?”
Curiosity builds trust. Judgment shuts conversations down.
The best financial conversations happen long before anyone needs money. Don’t wait until there’s a medical emergency, job loss, divorce or estate settlement.
Instead, create a family tradition. Have a semiannual “money dinner,” where you:
- Review major life changes
- Discuss family goals
- Celebrate financial wins
- Update important documents
Make money as normal to discuss as your vacation plans.
The greatest inheritance
Many parents focus on leaving wealth. I believe our greatest inheritance is wisdom. Money can be spent. But values compound.
If your children inherit confidence, sound judgment, healthy financial habits and the ability to have honest conversations about money, you’ve already given them something priceless.
The question isn’t whether your family should talk about money.
It’s whether you’ll begin the conversation before life forces you to. Because the families who talk together today are often the families who stay together tomorrow.
