How to Talk to Your Kids About Wealth: A Guide for Every Age: Part 1

As parents, we carefully guide our children through so many of life’s important lessons. When it comes to money, though, how and when to start the conversation isn’t always clear. 

But engaging in open and age-appropriate discussions about finances is a powerful opportunity to shape the next generation’s character and their relationship with money. By intentionally weaving discussions about your family’s blessings into everyday life, you can actively instill the principles you hold dear — perhaps a deep-rooted faith that guides your decisions, a commitment to being good stewards of what you’ve been given, and a heartfelt desire to leave a legacy of positive impact and generosity in the world.

An Age-by-Age Guide to Talking About Money

The way you discuss money and wealth with your children will naturally evolve as they grow and their understanding deepens. These conversations can begin with a clear tone: wealth is not synonymous with entitlement. Instead, it comes with a profound sense of responsibility: to manage it wisely, to use it ethically, and to consider its impact on the world. By framing wealth in this way from the outset, you lay the groundwork for raising children who are conscientious stewards of the resources entrusted to them.

Below is a suggested guide to navigating these conversations at different stages.

Ages 5–9: Building Awareness

At this age, the focus remains on introducing fundamental concepts in a tangible and relatable way. Use simple terms and everyday examples to illustrate earning, saving, giving, and spending.

• Earning: Connect work and effort to receiving resources, whether it’s through small chores or observing your own work. Emphasize that resources are earned, not simply given.
• Saving: Introduce the idea of setting aside a portion of money for a future goal, whether it’s a toy they want or contributing to a cause they care about. This can be linked to the value of delayed gratification and planning.
• Giving: This is a crucial time to introduce the concept of generosity. Talk about donating to those in need or supporting organizations aligned with your family’s values. Make it a tangible experience, perhaps by involving them in choosing a charity or packing donations. This directly reflects the value of living a legacy of impact and generosity.
• Spending: Discuss the difference between needs and wants. When they want a new item, talk about the resources required to obtain it and encourage thoughtful choices. Emphasize the value of things beyond their price tag — their usefulness, their impact, or the joy they bring.

Ages 10–13: Introducing Responsibility

As they enter these pre-teen years, you can introduce the basics of budgeting, saving for slightly larger goals, and a more nuanced understanding of charitable giving. Opening a bank account can be a practical step in this stage.

• Budgeting: Introduce the idea of understanding where their money goes, perhaps tracking allowance and small gifts.
• Saving: Encourage them to set both short-term and slightly longer-term financial goals, such as saving for a specific item or experience. Discuss the discipline and planning required to achieve these goals.
• Banking: This is a good time to open a simple savings account and explain the concept of deposits and interest (in basic terms). Allow them to manage small deposits and withdrawals under your guidance.
• Giving: Continue conversations about the causes your family supports and why. If applicable, involve them in discussions about where a portion of family giving might go. This reinforces the value of being good stewards and contributing to something larger than themselves.

Ages 14–17: Developing Independence

As teenagers, they’re ready for more in-depth conversations about budgeting, saving for significant goals, the responsibilities of earning, and a deeper understanding of financial planning concepts.

• Budgeting: Introduce the concept of tracking income and expenses more formally. You can involve them in age-appropriate family budgeting discussions, perhaps around entertainment or personal spending. This helps them understand the flow of money and the choices involved in allocating resources.
• Saving: Encourage them to set longer-term financial goals, such as saving for a car, further education, or travel. Discuss the discipline and planning required, as well as the potential for interest or investment growth (in simple terms).
• Earning: Encourage part-time jobs or entrepreneurial endeavors. This provides them with firsthand experience of earning, managing, and making choices with their own money, including the opportunity to save, spend, and give.
• Taxes and investing: Begin discussing concepts like taxes (especially related to their earnings), different types of savings accounts, and the idea of investing (very simply, perhaps through observing your own long-term strategies).
• Legacy: This is also a good time to start discussing the concept of legacy in a broad sense — what the family wealth is meant to support over time and the values that underpin it.

Ages 18–25: Fostering Independence

As young adults, the conversations should center on real-world financial lessons to prepare them for full financial independence.

• Real-Life: This includes discussions about investing, understanding taxes, the responsible use of credit cards, loans, and long-term financial planning. You might consider involving them in discussions with your financial advisor.
• Legacy: Explore the family’s financial legacy in more depth. What are the long-term goals for the family’s wealth? What impact do you hope it will have on future generations and the wider world? Encourage them to think about their own role in this legacy.
• Meetings: Create opportunities for young adults to meet your financial advisor and ask questions directly. If applicable, involve them in discussions about philanthropic endeavors or the management of family foundations. This fosters a sense of ownership and responsibility. (We’ll cover more on this in part two of our series.)
• Independence: As they transition into adulthood, the focus should be on equipping them with the skills and knowledge to manage their own finances responsibly. This includes budgeting, saving, understanding debt, and making informed financial decisions.

Building a Foundation of Understanding

This age-by-age guide offers a starting point, but remember that your understanding of your children is paramount. Embrace opportunities to weave these discussions into your family life organically. The more openly and consistently we guide our children in understanding the responsible stewardship of money, the brighter their financial future and their potential for positive impact become.

Let us partner with you to build a legacy that extends far beyond wealth — a legacy of understanding, responsibility, and a commitment to living a life of significance. Connect with our team today and stay tuned for the next part of our series, where we explore common missteps to avoid when navigating these conversations.

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