5 tips for talking with your kids about money

Herritt says you can begin discussions about money when your kids are as young as five years old. A focus on your family’s principles can be a good place to start.

“Your values and beliefs guide every decision in your life,” Herritt says. “If you communicate your values around money, then when you face a difficult decision or conversation, you can point back to those values.”

Herritt suggests creating a family mission statement that can help guide future financial decisions—and ensure everyone feels heard. “Family members can share what’s most important to them,” he says. “It helps create a roadmap based on what the family wants to accomplish in the future.”

Financial literacy is essential, but very few elementary, middle, or high schools include it in their learning plans. Parents can often find opportunities to teach kids about saving, spending, investing, and giving through everyday activities.

If you’re paying a bill or making a credit card purchase, for example, use the moment to educate your kids on financial topics like budgeting and maintaining a good credit record. You can also find age-appropriate books and apps to help reinforce the lessons. Look for topics that are important to your family, such as saving, investing, or philanthropy.

Herritt also stresses the importance of teaching your children about your family history. When the next generation learns who built the family’s wealth and how they did it, they gain inspiration to protect the family’s legacy.

Make a habit of sharing family stories with your kids whenever you can. Storytelling can bring to life the challenges your family has overcome to get where it is today and help kids understand that the family’s bonds are deeper than money.

Including your children in financial decision-making processes can create additional learning opportunities for them. For example, let them participate in discussions about the budget for your next vacation and make choices about which activities fit.

“And let them make mistakes when the stakes are low,” says Herritt. “Kids who make mistakes will learn about consequences and will carry these lessons with them.”

For example, if you see your kids spending all their allowance money as soon as they get it, don’t step in with a loan when they want to spend more before their next “payday.” 

Avoiding financial discussions altogether can unintentionally signal a lack of confidence in children’s ability to handle wealth responsibly.

“You want the next generation to have a seat at the table and know you’re willing to listen to them,” Herritt says. “Then, as they get older, they can step confidently into their role as responsible caretakers of the family wealth.”

If you’re looking to back up your conversations with additional educational opportunities, the Center for Family Legacy provides thought leadership resources on generational wealth, ranging from articles to podcast episodes.