4 Ways Older Generations Should Be Teaching Their Gen Z Kids About Money
Written by
Cindy Lamothe
Edited by
Amen Oyiboke
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Learning about money should start at home–with older generations passing on their wisdom to their kids. When it comes to discussing money with Gen Z, experts say it’s crucial to grasp the unique economic reality they face.
“The most important thing to remember is that you have to teach your kids about finances. They won’t learn through osmosis,” said Melanie Musson, a finance expert with Insurance Providers.
“Next, you have to focus on general principles rather than pet peeves. The more judgmental you come across, the more your kids will roll their eyes.”
Below are some expert-recommended ways older generations can teach their Gen Z kids about money.
Advice for Boomers
According to Michelle English, LCSW, co-founder and executive clinical manager at Healthy Life Recovery, older generations like boomers, who may have been raised with more traditional financial values like the importance of saving and working hard for security, need to understand that Gen Z’s financial landscape is different.
“Growing up in an era of technological advancements, economic volatility, and heightened awareness of global issues like climate change and social justice, Generation Z has a more comprehensive understanding of money and its implications.”
She said boomers should share their savings experiences, emphasizing the timeless value of planning for the unexpected while also acknowledging that traditional paths to financial stability, such as owning a home or securing a long-term job, are becoming increasingly difficult.
“They can provide advice on budgeting and saving, but they should also be willing to discuss new financial tools and concepts that are more relevant to today’s environment.”
Advice for Gen X Parents
“Gen X, who frequently combines modern digital finance with the practices of their boomer parents, can effectively bridge this gap,” said English.
She said they should introduce Gen Z to the concept of financial literacy through relatable scenarios, like understanding loans or the significance of credit scores, which are more important than ever.
“Gen X parents are uniquely positioned to teach their children about avoiding debt traps, particularly student loans, by discussing alternative education and career paths that align with Gen Z’s desire for flexibility and impact.”
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Advice for Millennial Parents
According to English, millennials, who have experienced significant economic disruptions such as the 2008 financial crisis, can empathize with Gen Z’s current anxieties.
“They should promote open discussions about money, creating an environment in which questions are welcome, and mistakes are viewed as learning opportunities,” she said.
“Sharing their own digital finance experiences, such as using budgeting apps and investing on platforms like Robinhood, can help Gen Z understand how to use technology to achieve financial independence.”
Additional Advice for Parents
Overall, English said It’s critical for all generations to understand that Gen Z values transparency and authenticity.
“Conversations about money should not avoid discussing global issues affecting financial systems, such as sustainability and ethical investing.”
Musson noted that teens–even young teens–have opportunities to make money and they should be given those chances and encouraged to work for pay.
“It’s only when teens have money to work with that they can start following the advice they’re given,” said Musson.
She said some general principles that stand the test of time are budgeting, keeping out of high-interest debt, and saving.
“Parents should talk about how to practically do each of these things. They should challenge their teen to make financial goals that are appropriate for their age and interests.”
Instead of picking apart the goals, Musson advised parents should consider what it’s like to be a teen.
“Then, parents should point out some possible improvements while remembering that intentionally using money is better than spending without a plan.”
By combining past generations’ wisdom with modern approaches and an openness to innovation, experts say families can provide Gen Z with the tools they need to be financially responsible in an ever-changing world.
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