Teaching Kids About Money: A Values-First Approach
Most financial education for kids focuses on mechanics: how to save, how interest works, and how to balance a checkbook. These skills matter, but they miss something essential.
Before children learn what to do with money, they need to understand what money is for.
At Advocates Wealth Planning, we help families build multi-generational wealth. A critical part of that work involves preparing the next generation—not just with accounts and trusts, but with understanding and values.
Why Values Come First
Research consistently shows that children who understand their family's values around money make better financial decisions as adults. They're not just following rules, they're operating from principle.
Consider the difference between a child who knows "we save 20% of everything" versus a child who understands "in our family, we believe in preparing for the future so we can help others and ourselves." Both might save the same amount, but the second child carries a deeper understanding that will guide decisions you can't anticipate.
Age-Appropriate Conversations
Ages 5-8: Plant the seeds
• Introduce the concept that money represents choices
• Use three jars: Save, Spend, Give
• Talk about why your family gives to certain causes
Ages 9-12: Build understanding
• Involve them in family budget discussions (age-appropriately)
• Let them make spending decisions with their own money
• Discuss trade-offs: "We could do this OR that—which aligns better with what matters to us?"
Ages 13-18: Develop competence
• Open a checking account and debit card with oversight
• Introduce investing concepts using real money (even small amounts)
• Have honest conversations about family finances and future plans
Practical Tips for Values-Based Money Education
1. Name your family's money values, explicitly. Write them down. Display them. Reference them when making decisions. "We value generosity" is more powerful when everyone knows it's a family principle.
2. Let children see you making values-based financial decisions. When you choose not to buy something because it doesn't align with family priorities, say so. When you give to a cause, explain why it matters.
3. Allow mistakes. A child who spends their entire allowance on candy and then regrets it learns more than one who was never allowed to make a choice. The key is processing the experience together.
4. Include children in Giving decisions. Let them research charities, choose where a portion of family giving goes, and see the impact of generosity firsthand.
The Long Game
Financial education is not a one-time conversation—it's an ongoing dialogue that evolves as children grow. The goal isn't to raise kids who are good with money. It's to raise adults who understand what money can make possible when guided by clear values.
At Advocates Wealth Planning, we believe family wealth includes more than dollars. It includes the wisdom to use those dollars well. Ready to start the conversation? We're here to help.
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