Gen Z and Investing: How to Talk to Your Children About Money

If you’re a parent or grandparent, chances are you’ve worked hard to build financial security—and you want your children to benefit from the same values and habits that helped you get there. But when it comes to talking to Gen Z (those born between 1997 and 2012) about money and investing, many families feel unsure where to start.

Here’s how to approach the conversation.

Why Now Is the Time to Start

Gen Z are entering adulthood in a uniquely challenging financial landscape:

• High cost of living and housing
• Rising student debt
• Growing interest in ethical and digital investing
• Access to social media finance influencers (not always reliable)

Many Gen Zs are eager to learn about money but don’t feel confident or know where to turn. Starting the conversation early can help them avoid costly mistakes—and make empowered financial choices.

How to Talk to Gen Z About Money: 6 Tips

1. Start With Their Goals

Gen Z is often motivated by purpose. Instead of leading with pensions or tax wrappers, ask:

• “What kind of life do you want to build?”
• “What would financial independence mean to you?”
• “What are your priorities—buying a home, travelling, starting a business?”

Linking money to goals helps make financial planning feel relevant.

2. Teach the Power of Compound Growth

It may sound like Financial Planning 101, but for Gen Z, showing how small investments now can grow significantly over time is a game-changer.

Example:

“Did you know that investing just £100/month from age 22 could give you over £200,000 by retirement (assuming 6% annual growth)?”

3. Explain the Basics of Investing—Without the Jargon

Keep it simple:

• What are stocks, bonds, and funds?
• What’s the difference between saving and investing?
• Why is diversification important?

You don’t need to turn them into a portfolio manager—just help them understand enough to start.

4. Talk About Risk—And How to Manage It

Young investors often think they need to “bet big” to make money. Explain that:

• Investing isn’t about timing the market, but time in the market
• Long-term investing smooths out short-term volatility
• Risk can be managed with diversified, low-cost portfolios

5. Introduce Tax-Efficient Tools Early

Gen Z can benefit hugely from early use of tax wrappers like:

• Stocks & Shares ISAs
• Lifetime ISAs (LISAs) for home purchase
• Workplace pensions and auto-enrolment schemes

Most young adults aren’t aware of how valuable these tools are—until someone explains them.

6. Lead by Example

Be open about your own financial journey:

• What worked?
• What do you wish you’d known at their age?
• How do you make investment decisions?

This creates trust and demystifies what can feel like a closed, adult-only world.

What Matters to Gen Z? Aligning Values With Wealth

Gen Z is more likely than any generation before to want their investments to reflect their values:

• ESG investing (Environmental, Social, Governance)
• Ethical or impact funds
• Climate-focused portfolios
• Diversity and corporate responsibility

Show them that it’s possible to grow wealth and invest according to their principles.

Bridging the Generational Wealth Gap

Whether your family has accumulated significant assets or you’re just starting to plan for the future, talking to your children about money is one of the most powerful financial moves you can make.

Final Thoughts

Your children don’t need to become financial experts—but they do need guidance, confidence, and access to the right tools.

Helping Gen Z understand the basics of investing now can lay the foundation for lifelong financial wellbeing—and responsible wealth management for generations to come.

Approver Quilter Financial Services August 2025