Moving out, scheduling your own doctor appointments, learning how to cook something other than craft Mac n cheese—these are some of the many milestones that mark the transition from tethered teen to independent adult. Becoming financially independent is another one of those big milestones, but research shows that emerging adults are taking longer than they did 50 years ago to meet this key milestone.[1] What does this mean for families, and how do kids learn to manage money in the first place? In this article, I’ll discuss how different socioeconomic classes of parents tend to teach their kids about finances—and how those teachings often shape adolescents’ financial futures.
Becoming financially independent doesn’t just “happen” at 18. Adolescents gain financial knowledge, habits, and confidence over time, often by observing, listening to, and learning from the adults in their lives. But that learning process looks very different depending on a family’s background, specifically, their socioeconomic class.1
A study by Dr. Sigrid Luhr explored how adolescents in the U.S. learn about money from their parents—and how social class (e.g., middle-class and working class) plays a powerful role in shaping that process.1 Through 52 interviews with parents and adolescents, a pattern emerged: the way parents teach their kids about finances is often influenced by their socioeconomic class.
Middle-Class Families: Confident and Proactive
Middle-class parents in Dr. Luhr’s study were generally proactive and intentional about teaching their kids financial skills. 1 They were more likely to see financial education as their responsibility, and typically felt more confident in their own ability to pass along these financial concepts. Many of the middle-class parents introduced their children to financial institutions (such as banks or credit unions) early, helped them open bank accounts, and gave them regular opportunities to handle money such as through allowances, gift cards, or earnings from small jobs.
In addition to these hands-on experiences, parents also reinforced financial learning through frequent conversations. These parents often started money conversations without waiting for their kids to ask.1 Even when the information shared was simple, the frequency and openness of these discussions helped normalize money as an everyday topic of conversation. They explained not just what to do with money, but also the reasons why, and supported their children in making early financial decisions by coaching them through small mistakes rather than trying to prevent all mistakes.
As a result, middle-class adolescents tended to feel more comfortable navigating finances. They were more likely to talk about money with ease, expressed confidence about their financial future, and felt entitled to use resources like credit, loans, and savings accounts. Most expected to become financially independent in their mid-to-late twenties, seeing independence as a gradual process supported by their family.1 By combining practical experiences with open communication, middle-class parents created an environment where financial skills, confidence, and expectations for independence developed hand-in-hand.
Working-Class Families: Uncertain and Protective
Working-class parents often reported feeling less confident in their own financial knowledge and more hesitant to take on a teaching role.1 As such, many described wanting to protect their children from financial stress by shielding them from financial difficulties. While this approach came from a place of love and responsibility, it meant that kids had fewer chances to learn about money firsthand.
Rather than initiating conversations, these parents were more likely to wait until their children asked questions or reached a milestone like getting their first job.1 When conversations did happen, they were often brief, vague, or limited to practical needs. Parents were less likely to explain the “why” behind financial decisions and more likely to focus on avoiding hardship rather than building skills.
Interestingly, while working-class parents talked less openly about money, their adolescents often still picked up bits of financial knowledge through observation—listening in on conversations or noticing patterns in day-to-day life. But without guidance or context, this informal learning could lead to fear or confusion. An overheard conversation about not being able to pay the bills without any consolation or explanation could be frightening for an adolescent. To add to the predicament, the things they listened in on or observed were often the very same financial difficulties that their parents were trying to shield them from. With front-row seats to their parents’ struggles—and without the added support of open conversation about these topics—many working-class adolescents expressed fear or uncertainty about money and were less likely to feel confident using banks or taking out loans.1 At the same time, many were often expected by their parents to assume financial independence earlier than their middle-class peers—often in their early twenties or even late adolescence. Overall, these patterns suggest that working-class parents’ protective approach, though well-intentioned, often left adolescents less prepared and more anxious about navigating financial independence.
What This Means for Parents
These differences aren’t just about how much money a family has—they’re about how families talk (or don’t) about money, and how kids are introduced to financial experiences.1 While most still have a lot to learn, even with financial guidance, all adolescents benefit from a mix of open conversation, exposure, and encouragement.
Here’s the good news: you don’t need a degree in finance or a perfect money history to help your child become financially capable. No matter your background, you can play a powerful role in shaping your adolescent’s financial future.
Takeaways
Every family’s financial story is different—but every adolescent deserves the tools and the confidence to step into adulthood with a solid foundation. No matter your financial situation or level of financial experience, be intentional and proactive in teaching your kids about finances. Below are a few tips and tricks that, as a parent, you could implement to help your child feel more confident in their financial future.
- You don’t have to be a money expert to teach your kids about money.
Your everyday choices—like paying bills, grocery shopping, or planning for expenses—can be powerful teaching tools. Just narrating your thought process out loud (“I’m buying this in bulk because it’s cheaper in the long-term”) helps your child connect money to real life. It’s not about being perfect, it’s about being present. If you feel uncertain about being a positive example, consider learning more about finances through free community or online resources. - Start the money conversation early—and keep it going.
Don’t wait for a “big moment” to talk about money. Include your child in small decisions, such as comparing prices at the store, reading a receipt, discussing wants vs. needs, etc. Let them ask questions, and be honest if you don’t know something. The goal is to make money feel like an open, ongoing topic—not taboo. - Give your child opportunities to practice handling money.
Give your child opportunities to earn, save, and manage small amounts of money through an allowance, jobs, or birthday cash. Consider helping them open a bank account or encourage them to pay for some activities, gifts, or toys with the money they have earned. When they make mistakes, talk through what happened with expressions of support rather than shame. These experiences can build a solid foundation of money confidence without the high stakes that come later in life. - Build confidence, not just knowledge.
It’s great to teach budgeting, saving, and credit—but just as important is helping your child feel capable. Adolescents who feel confident are more likely to ask questions, seek out resources, and navigate banks or jobs without fear. Celebrate their progress, remind them that no one figures it out all at once, and show them through your words and actions that you are there to help them learn and grow.
Resources:
[1] Luhr, S. (2018). How social class shapes adolescent financial socialization: Understanding difference in the transition to adulthood. Journal of Family and Economic Issues, 39(3), 457–473. https://doi.org/10.1007/s10834-018-9573-8