We have started talking to the girls about money so they understand our financial big picture. We tell them when we're putting money into their college savings accounts. They see us price check different items. We talk about saving for retirement. We discuss how much extra-curricular activities cost and the trade-offs to participate both in time and money. We hope they'll understand that everything requires resources -- time and money.
It's important for them to be able to handle money. My Mom was a banker, yet I don't remember any conversations about saving money or budgeting when we were kids. It's was something our parents handled. It wasn't until we were adults that my parents started talking about money. It felt like a new language to me.
We were in the car when the brunette twin said, "Mom, what happens if you run out of money in retirement?" At first I told her we'd have to live in her basement, but then I explained how we were saving money, carefully planning our retirement so we'd have enough money. I explained that things happen which we can't control and might change our plans. In that case we'll revisit our plans and adjust them appropriately.
It was a long chat about finances and planning. I was tired by the end of it as the girls can ask a lot of questions. Finally both girls agreed on one thing. If we needed to live with them we could. They'd plan to have a bedroom in each basement so we would have some place to live.