As parents, we spend years teaching our children all kinds of life lessons, from tying their shoes to driving a car. But one of the most important lessons they can learn as they move into adulthood is how to manage their money well.
If your child is now a young adult, chances are they’re finishing school, graduating from university, or starting their first real job. This is a perfect window of time to help them start thinking seriously about saving and investing. And while they may not be asking for financial advice just yet, your experience and guidance can make a huge difference in their financial future.
Before they turn to TikTok for guidance (because let’s face it, it’s where they turn to for most advice these days), here are some simple and practical ideas to share with your kids, to help them build good financial habits that will last a lifetime.
1. Start with the Basics
Many young adults don’t get much education about money in school. They might know how to swipe a card or use Apple Pay, but budgeting, compound interest, and investing can be foreign concepts.
A good starting point is to sit down and have an open, non-judgmental conversation about money. Cover the basics like:
- The importance of living within their means
- How to create a simple budget (the government’s moneysmart website provides a few here)
- Why saving early, even small amounts, adds up over time
- The difference between saving and investing
If you’re unsure how to explain it all, consider pointing them to podcasts, YouTube, or books aimed at young people, although no doubt their channel of choice will be TikTok. There are so many great resources available. Sometimes advice lands better when it doesn’t come directly from Mum or Dad.
2. Encourage an emergency fund
Before your child thinks about investing, they should have a small emergency fund. This is a basic savings account with three to six months’ worth of expenses in case something unexpected happens, like losing a job or needing car repairs.
It’s not flashy, but it’s the foundation of financial stability. Help them work out a savings goal and show them how to set up automatic transfers each payday. This way, saving becomes a habit, not a chore.
3. Make super real
Young people often don’t think much about their super. Retirement feels a long way off when you’re 22 and planning your first European summer trip. But helping your child understand the power of compound growth in their super fund can be a game-changer.
You might show them how even small extra contributions can grow significantly over decades. If they have a job already, encourage them to log into their super fund’s site or download their app to see how their balance is tracking and where their money is invested. Encourage them to take an interest, choose a fund that suits their values (such as ethical investing), and consolidate their super if they have picked up multiple accounts.
4. Open their eyes to investing
Once your child has a handle on budgeting and some basic savings, they might be ready to dip a toe into investing.
The good news? Investing has never been more accessible. There are low-fee apps and platforms that allow people to start investing with as little as $5 or $10. You don’t need to be wealthy to get started.
Explain the concept of risk and reward, the value of long-term thinking, and the benefits of diversification (not putting all your eggs in one basket). You could even offer to match a small investment they make as a way to encourage them.
Again, keep it simple. This isn’t about picking stocks or chasing quick wins, it’s about learning how to grow money steadily over time.
5. Lead by example
It’s one thing to talk about saving and investing, but it’s even more powerful to show them how it’s done.
If you feel comfortable, share parts of your own financial journey. Talk about mistakes you’ve made, lessons you’ve learned, and what you wish you’d done differently at their age. You might even walk them through your own investment account or show them how you plan for retirement.
Real-life examples can make money feel less abstract and more doable.
6. Talk About Lifestyle Choices
Social media is directly and indirectly bombarding our young adults to spend. Instagram-able holidays, fashion trends, gadgets, the latest must-try bars. There’s constant pressure to keep up.
We all know that what we see online isn’t always reality, but it’s worth a reminder. Talk to them about living below their means and making intentional choices with their money. If they can learn to delay gratification now, they’ll have much more freedom and security later.
It isn’t about being stingy, it’s about being smart.
7. Be patient and supportive
Finally, remember that financial literacy takes time. Your child might not get it right away, and that’s okay. The goal is to plant seeds now so they can grow into confident, financially capable adults.
Encourage questions, celebrate small wins (like hitting a savings goal), and keep the conversation going. Set yourself us as a steady guide they know they can turn to.