From Pocket Money to Paycheques: Teaching Kids to Manage Money

At what age should parents stop paying the bills and expect their children to stand on their own financially? It’s a question that touches not just on money, but on maturity, culture and confidence.

New research by Revolut suggests Kiwi parents are divided — but leaning toward earlier independence. The survey found that 42% of New Zealand parents believe children should be financially independent between the ages of 20 and 25. A further 33% said children should be financially independent, though views differed on exactly when that should happen.

The findings reflect a broader shift in how families think about money. Rising living costs, student debt, and high property prices have made the path to independence less straightforward than it was for previous generations. Yet many parents still see the early twenties as a reasonable milestone for financial self-sufficiency.

What does “financial independence” really mean? For some families, it means covering everyday expenses — rent, groceries, transport — without parental help. For others, it extends to paying off tertiary education costs or contributing toward savings and investments.

Financial advisers often stress that independence is not a single event but a gradual transition. A 20-year-old university student working part-time may not be fully self-supporting, but learning to budget, save and manage debt are key steps toward autonomy.

When should the cord be cut? There is no universal age that suits every family. Instead, experts suggest parents focus on readiness rather than a birthday. Indicators of readiness can include:

Understanding how to budget and track spending

Managing a bank account responsibly

Avoiding high-interest debt

Contributing toward personal expenses

Setting short- and long-term financial goals

Parents can begin teaching these skills well before adulthood. Providing pocket money tied to responsibilities, encouraging part-time work, and involving teenagers in household budgeting discussions can build confidence early.

The reality check In today’s economy, full independence at 20 may not always be realistic. Many young adults remain at home longer to save for deposits or reduce living costs. In high-cost cities, rent alone can consume a large share of entry-level wages.

Some parents adopt a phased approach: reducing support gradually rather than ending it abruptly. For example, they may stop covering discretionary spending first, then expect contributions to household expenses, and later encourage independent living once income stabilises.

Teaching, not cutting off Financial educators often argue that the goal is not simply to “cut the cord” but to equip children with the skills and confidence to manage money wisely. Conversations about credit cards, insurance, investing and retirement savings are increasingly starting earlier.

The Revolut findings suggest Kiwi parents value independence — but timing depends on circumstances. Ultimately, the right moment is less about age 20 or 25, and more about preparation.

Independence is not a cliff edge; it’s a bridge. The stronger the financial education beneath it, the steadier the crossing will be.