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How to help your adult children with financial education

Learn how to guide your adult children through financial responsibilities like using a credit card, tracking budgets and investing responsibly.

CIBC Sep. 01, 2020 2-minute read

Congratulations, your kids have finally reached adulthood. They’re now at an age when they can manage more complex financial responsibilities — like having a credit card, investing in the stock market, or paying some or all of their tuition or rent. As parents, one of your biggest challenges is to be there for them, even if they’re no longer at home. Keeping the lines of communication open helps you stay in tune with what’s going on in your kids’ lives and lets them know you’re there for them.

Using credit cards

When used responsibly, a credit card is a great tool to help build both a credit history and a healthy financial life. Talk to your kids about what types of purchases they may want to pay for with their credit cards and which are best paid for in cash. Emphasize spending only what they can pay off each month, and encourage them to pay their monthly bill on time. Learn more about credit cards and how to use them.

Tracking budgets

Help your kids keep track of what they earn and spend over the year in order to figure out their average expenses and savings. That information lets them adjust their budget based on their current needs and lifestyle expectations. Show them how you budget, and ask them to do the same. For a great first step, try the CIBC student budgeting calculator.

Investing 101

Educate your kids about investing early and regularly. This way, they’ll have a strong head start to achieving their long-term goals, including retirement. As the old saying goes, it’s time in the market, not timing the market, that pays off.

Share these resources with your kids to start the investment conversation:

Investing responsibly

Today, younger investors aren’t just looking to invest in companies with solid returns. They want to invest in companies that align with their social, environmental and governance ideals. That’s responsible investing. If your children are interested in responsible investing, this video can help answer some of their questions. Opens in a new window.

You know your kids best. With adult children, money conversations can include everything from savings and debt to investing. Preparing them now will lead to financial success later.

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How to help your adult children with financial education

Using credit cards

Tracking budgets

Investing 101

Investing responsibly

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