How do you start ‘the talk’ with your kids?
"No, not that talk... the other big talk."
Parents all ask the same question
After 20+ years working as a financial adviser, you get to see patterns in people's actions and, more importantly, their questions.
The number one question I get asked by parents of all ages is,
‘How can I help my kids get ahead in life?’
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That’s a complex question, but as you listen, you hear their heart’s motivation when they go on to say, ‘I know how hard it’s been for me and my parents, and I don’t want my kids to make the same mistakes I did.’ This is the question and underlying motivation that keeps them up at night; this is what keeps me up at night, too.
Well, the answer starts with my follow-up question:
‘How often do you talk with your children about money?’
At this point of the discussion, most people pause uncomfortably, look away, blush, and wring their hands a little.
Yes, I went there. I said it: the real talk is the money talk.
As many people would prefer death over public speaking, many parents would rather have a safe sex conversation with their teenager rather than have the money talk.
Why do so many people find talking about money more confronting than talking about sex? Is it because we don’t want to answer inevitable questions like, ‘So how much money do you make? Why don’t you make more? Why don’t you give me more?’ Oh, isn’t that a can of worms? Perhaps it’s that we simply don’t have a framework for how to chat comfortably about our fiscal habits and fancies.
What we think is not valued until we do
Why is it so hard? *sigh*
Well, the quick answer is everything we know, we’ve learned somewhere. Initially, we adopt the outlook of our parents and their beliefs about the role that money plays in our lives. Over time, we get the chance to make up our own minds about such key issues, but most people forget to do this until they run into a foundational problem when their business outlook conflicts with their life outlook.
Too many people are operating their lives, their business, and even their relationships based on either outdated or just plain unstable beliefs about the role money plays in their lives.
Here’s how to start the money talk with your teenagers
Think about what money means to you. If you're quick to answer, ‘Freedom!’ go back and think some more about it just to be sure.
Identify what money messages you recall hearing from your parents. (If you feel the need to adopt the fetal position at this point, you’ve probably hit upon something worth sorting out).
Decide that educating your children about money is your responsibility
When chatting with teenagers about money, they have a natural tendency to internalise responsibility for all problems, so only talk about how money works, how value is exchanged, and how you work with it. Don’t expect them to be your personal adviser, confidant, co-parent or your CFO.
The one question that Kim Kardashian cannot answer
Teenagers may zealously believe you can’t compare the value of a designer Kardashian handbag to a set of 20-inch alloy mag wheels for a car, so don’t try.
A better way to help compare apples with oranges is to break down the value of your purchases into a common denominator with this question, whether you’re talking handbags or mag wheels:
‘How many hours did you have to work to afford that?’
From this point on there will be questions about pay rates, education and skills, as well as employment versus self-employment. Hopefully, it will then lead to conversations about appreciation, thoughtfulness and sacrifices made so that others may benefit.
The money talk is a relaxed way of encouraging ongoing discussions about money and what’s important.
So, suck it up and set a date to have ‘the talk’ with your kids.
Frequently Asked Questions: Navigating 'The Talk' with Teenagers
Why is the 'Money Talk' so confronting for parents?
Money is deeply tied to our sense of competence and identity. Many parents worry that admitting they don't have all the answers—or revealing their own salary—will undermine their authority. However, in 2026, transparency is more valuable than mystery. Being honest about how you manage risks and recover from mistakes provides a far more resilient model for your children than a "perfect" facade.
How do I teach them to evaluate 'Wants' vs 'Needs'?
Don't argue over the item; argue over the energy required to get it. Use the "Life Energy Formula" to help them see the real cost of a purchase. Whether it's a designer handbag or a car upgrade, the math is the same:
$$\text{Hours of Life} = \frac{\text{Purchase Price}}{\text{Hourly Rate (After Tax)}}$$
When a teenager realizes a new pair of shoes equals 20 hours of standing at a retail job, the purchase decision moves from an emotional impulse to a logical "Sovereign" choice.
How do I handle the 'How much do you make?' question?
You don't have to give a dollar figure if you're not ready, but you should discuss proportions. Explain how your income is divided: what percentage goes to the "Roof" (mortgage/rent), the "Future" (super/investments), and "The State" (taxes). This teaches them that a high salary isn't just "spending money"—it's the fuel for a complex household economy.
What if I've made bad financial mistakes in the past?
Your mistakes are your most powerful teaching tools. Sharing how you handled a financial train wreck or paid off a high-interest credit card debt normalizes the fact that financial life is a skill that must be practiced. It moves the conversation from "I failed" to "I learned," which gives your children the courage to be honest with you when they eventually face their own financial hurdles.
Disclaimer: Financial conversations are a form of social learning. These strategies are designed to foster literacy and resilience. For a strategic audit of your family's financial legacy and "Sovereign" protection plan, we recommend a confidential consultation.
Call us today on 1300 137 403 or email us here for a no-obligation private chat about your situation.
Drew Browne is a specialty Financial Risk Advisor working with Small Business Owners & their Families, Dual Income Professional Couples, and diverse families. He's an award-winning writer, speaker, financial adviser and business strategy mentor. His business Sapience Financial Group is committed to using business solutions for good in the community. In 2015 he was certified as a B Corp., and in 2017 was recognised in the inaugural Australian National Businesses of Tomorrow Awards. Today he advises Small Business Owners and their families, on how to protect themselves, from their businesses. He writes for successful Small Business Owners and Industry publications. You can read his Modern Small Business Leadership Blog here. You can connect with him on LinkedIn. Any information provided is general advice only and we have not considered your personal circumstances. Before making any decision on the basis of this advice you should consider if the advice is appropriate for you based on your particular circumstance.
