We hear it everywhere. Housing is unaffordable. Groceries cost a fortune. Retirement is becoming impossible. With so much attention on the rising cost of living, is it any wonder that young adults are worried about their financial futures?
A recent SoFi survey found that while 62% of Gen Z and millennials aspire to retire comfortably, only 46% are confident they'll be able to. That's a significant gap between what they want for their futures and what they believe they can achieve.
And while those numbers reflect how young adults feel today, they don't have to predict how our teens and tweens will feel tomorrow.
Our kids are growing up hearing how expensive and difficult adulthood has become. But before they conclude that owning a home, raising a family, or retiring comfortably is out of reach, we have an opportunity to show them what's possible.
We can't control the economy, but we can prepare our kids to make good financial decisions within it. And the sooner we start, the more opportunities they'll have to build the knowledge, habits, and confidence they'll need as adults.
Watch What They Hear
Kids are listening, even when we don't realize it. And the things we say about money can have a bigger impact than we intend.
How often do we casually say, "We're broke!" or "We can't afford that!"? We might be joking or simply expressing frustration over a large bill, but our kids may hear something very different. They may wonder whether their family is in financial trouble or worry that there won't be enough money for the things they need.
And sometimes our words can be confusing. We tell our kids we can't afford something they want, but then they watch us buy a $6 coffee or order takeout. From their perspective, it doesn't make sense. If money is so tight, why are we spending it on those things?
Instead of saying, "We can't afford that," try saying, "That's not how we're choosing to spend our money right now." Then explain what you're prioritizing and why. Kids need to understand that having enough money to buy something doesn't necessarily mean it's a good decision to buy it.
The same goes for the financial news they hear. When kids hear that grocery prices are rising, housing is unaffordable, or families are struggling to make ends meet, don't assume they understand what that means for your family.
Give them some context. If groceries cost your family $50 more each week than they did a few years ago, explain how you're adjusting. Maybe you're eating out less, shopping sales, or choosing less expensive brands. If higher interest rates have changed your plans for buying a car or moving, explain why.
And if your family is doing just fine financially, tell them that, too! Kids shouldn't have to guess whether the alarming headlines they hear apply to their own household.
The goal isn't to shield kids from financial realities. It's to help them understand those realities without becoming unnecessarily afraid of their future. When we explain the decisions we're making and the reasons behind them, we're teaching our kids how to respond to financial challenges instead of simply worrying about them.
Give your kids the chance to practice making financial decisions while the stakes are still small.
Explore our hands-on financial literacy programs for ages 8+. 👆
Show Them the Numbers
Kids hear that everything is expensive, but do they know what anything actually costs? Without that information, it's easy to imagine that adulthood is financially impossible.
One of the best ways to replace that uncertainty with confidence is to help your kids put actual numbers behind the life they're imagining.
Start by asking your teen where they might want to live someday. Look up the cost of renting a one-bedroom apartment in that area. Then estimate what they'll need for utilities, groceries, transportation, insurance, and other living expenses.
Next, have them choose a career that interests them and look up its typical starting salary. Divide that salary by 12 to find their monthly gross income, then explain that taxes and other deductions will reduce what they actually take home (you can assume 30% for this exercise).
Now comes the interesting part: Can they afford the life they're imagining on that salary?
Don't immediately solve the problem for them. Let them discover that they might need a roommate, a less expensive car, or a different apartment. Maybe they'll realize that the career they're considering doesn't pay as much as they expected.
For younger kids, keep it simpler. Have them choose something they'd like to purchase, such as a new bike or gaming system. Look up the price and calculate how many weeks it would take to save enough money. Then ask what happens to that timeline if they spend some of their savings along the way.
The goal isn't to convince kids that everything is affordable. Some of their expectations may need adjusting, and that's an important lesson, too. But when kids understand the numbers, the future becomes something they can plan for instead of something they simply worry about.
Let Them Practice
We can talk to our kids about making good financial decisions all day long, but confidence comes from actually making those decisions themselves.
Start by giving your kids some responsibility for managing their own money. Whether it's money they've earned from a job or an allowance, help them establish a plan for giving, saving, and spending. Then let them make decisions about the money they've been given permission to spend.
In our family, we followed a simple rule: give 10%, save 70%, and spend 20%. That last 20% was entirely theirs to control. If they wasted it on something they later regretted, that was a lesson. If they saved it for something bigger, that was a lesson, too.
I explain this approach in more detail in my blog, Give Kids Financial Confidence (Not a Handout).
And here's the hard part for parents: Don't rush to rescue them when they make a poor decision. If your child spends all their available money and then discovers they can't afford something they want, let them experience that disappointment. It's a much less expensive lesson now than it will be when they're responsible for rent, groceries, and other adult expenses.
Younger kids can start with small amounts and simple choices, while teens should gradually take on more responsibility. The important thing is that they're making decisions, experiencing the results, and learning from both their successes and mistakes.
Every financial decision they make today is practice for a bigger decision they'll face tomorrow. And the more practice they get while the stakes are small, the more prepared they'll be to manage money confidently as adults.
Before You Start Shopping
Give Them Confidence in Their Future
I remember when my daughter, Kate, was worried about how she would ever afford to live on her own. She had heard plenty about how expensive adulthood had become, and she couldn't imagine how she would make enough money to pay for everything.
Then she took Beyond Personal Finance, and her perspective changed.
Over the course of 20 lessons, Kate practiced 20 years of adult financial decisions. She chose a career, earned a salary, found a place to live, bought a car, paid bills, and made countless decisions about how to spend and save her money.
She discovered that she couldn't afford everything she wanted, but she could afford a life she was excited about. She just had to make thoughtful choices along the way.
What changed wasn't the economy. It was her understanding of how to navigate it.
That's exactly why I created Beyond Personal Finance. I wanted my own kids to experience adulthood before they had to live it, and I've seen how much confidence that practice can give students.
For teens ages 13 and up, Beyond Personal Finance offers a hands-on simulation of adult life. For younger kids ages 8–12, Before Personal Finance introduces the decisions they'll face as they begin earning, saving, and spending their own money.
We can't promise our kids an easy financial future. But we can help them understand money, practice making decisions, and recognize that they have more control over their futures than they might think.
The future may be expensive, but it doesn't have to be frightening.
Frequently Asked Questions:
Why are young adults so worried about their financial future?
Rising housing costs, everyday expenses, and uncertainty about retirement have made many young adults question whether they'll be financially secure. A 2026 SoFi survey found that while 62% of Gen Z and millennials want to retire comfortably, only 46% feel confident they can. Parents can help their children develop financial confidence by explaining money decisions, teaching them how to budget, and giving them opportunities to practice managing money before adulthood.How can parents teach teens to be financially confident?
Financial confidence develops through experience. Parents can help teens research starting salaries, estimate living expenses, create budgets, and manage their own spending money. Allowing teens to make small financial mistakes and experience the consequences teaches responsibility and decision-making skills. The goal is to help teens understand that their financial choices influence what they can afford and the opportunities available to them.What is the best way to prepare teenagers for financial independence?
One of the most effective ways to prepare teenagers for financial independence is to let them practice adult financial decisions before they're responsible for them. Teens should learn how income, taxes, housing, transportation, saving, and spending fit together. A hands-on financial literacy curriculum like Beyond Personal Finance allows teens to simulate 20 years of adulthood, make financial decisions, and see how those choices affect their future lifestyle.
About Beyond Personal Finance: Beyond Personal Finance gives teens (middle & high school) the chance to design their future to see if they can really afford the life they dream of. In one semester (20 lessons- less than 2 hours per lesson), your teen will choose (and budget for) a career, car, apartment, spouse, house, investments, and so much more. This is the class your teen will get excited about. We also provide a curriculum called Before Personal Finance for tweens. Before Personal Finance is designed for late elementary students (Ages 8-12) and introduces foundational money concepts—spending, saving, investing, and borrowing—in a way that’s imaginative, hands-on, and fun. Learn about our full offering of services at beyondpersonalfinance.com!
