How to Answer Kids’ Toughest Money Questions
- Tyler Lavoie
- Nov 10
- 2 min read
When you’re raising a young family, you’re doing a lot for the first time.
Buying a house.
Budgeting on one or two incomes.
Trying to set goals while also paying for diapers, groceries, and a life that’s moving faster than you can plan for.
And then, out of nowhere, your child asks something that stops you in your tracks.
“Are we rich?”“Why can’t we buy that?”“Do we have enough money?”
It’s a mix of pride, panic, and pressure all at once.
You want to be honest—but not scare them.
You want to teach—but not lecture.
You want to handle it right.
It’s one of the many important parenting moments you’ll ever have.
Why Kids Ask
Young kids are curious about everything, and money is no exception.
They notice when you swipe a card, say “we can’t afford that,” or celebrate payday pizza night.
When they ask about money, they’re not trying to stress you out.
They’re trying to understand the world you’re building together.
And they’re looking to you for what money means.
Not the number. The meaning.
The Best Way to Respond
Here’s what I’ve learned from working with young parents:
You don’t have to have the perfect answer.
You just need a calm, clear one.
1. Keep it short and honest.If your child asks, “Are we rich?”, try this:
“We have what we need, and we’re thankful for it. That’s what matters.”
Or if they say, “Why can’t we buy that?”
“We’re saving for something more important right now.”
These small answers teach boundaries without shame.
2. Bring it back to values.
Money is how we make choices, but our values guide what those choices mean.
You can say:
“Money helps us take care of our home, share with others, and make fun memories. That’s why we plan before we spend.”
3. Keep the door open.
Kids remember when we take their questions seriously.
You might not say everything perfectly, but your tone teaches more than your words.
When you stay calm, they learn that money isn’t scary. It’s just something we manage together.
What These Moments Teach
When you turn money questions into conversations, three good things happen:
They learn security.
Kids feel safe when you answer honestly.
They learn gratitude.
You help them focus on what they have, not what’s missing.
They learn patience.
Waiting and saving become normal parts of life, not punishments.
These are the roots of financial confidence. And they grow faster than you think.
For Young Families Starting Out
You don’t need a perfect system.
You don’t need to know every answer.
You just need to show that money isn’t something to hide.
It’s something to learn together.
The earlier those conversations start, the easier they become.
So the next time your little one asks a “big” question, take a breath.
You’ve got this.
