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. However, 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. 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 wealth wisely, to use it ethically, and to consider its impact on the world.

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 the concepts of 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 that align 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 the family’s giving might be allocated. 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 discussions about family budgeting, such as 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 complete financial independence.

Real-Life: This includes discussions about investing, understanding taxes, the responsible use of credit cards, loans, and long-term financial planning. You may want to consider involving them in conversations 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 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 finances responsibly. This includes budgeting, saving, understanding debt, and making informed financial decisions.

Are You Making These Mistakes when Talking to Your Kids About Money?

Avoiding the Topic Altogether: Silence can breed misunderstanding, fear, or a sense of entitlement. Children are often more perceptive than we realize, and a lack of open communication can lead them to draw their own conclusions, which may not be accurate or aligned with your values. It can also leave them unprepared to handle money responsibly later in life.
Speaking in Vague Terms: While you don’t need to disclose every detail of your financial situation, vague statements (e.g., “we’re fine”) can lack educational value. Providing age-appropriate context helps children understand the principles behind financial decisions and the efforts required to build and maintain wealth.
Using Money as a Tool for Control: Linking financial support or privileges solely to obedience or specific achievements can create unhealthy dynamics. It can undermine intrinsic motivation and teach children that their worth is tied to their financial benefits, rather than fostering a genuine understanding of responsibility and the value of contribution.
Initiating Conversation at Inopportune Times: What’s appropriate to discuss with a five-year-old is vastly different from what resonates with a teenager or a young adult. Failing to evolve the conversation with their increasing maturity and understanding can leave them feeling either infantilized or unprepared. Remember the value of long-term mentoring; these conversations are a marathon, not a sprint.
Modeling Unhealthy Financial Behavior: Actions speak louder than words. If your financial habits don’t align with the values you’re trying to instill, it can create confusion and undermine your message.

Create a Legacy of Wisdom, Not Just Wealth

Navigating these crucial conversations with your children doesn’t have to be a journey you undertake alone. Financial advisors can play a vital role in facilitating structured and productive discussions, offering guidance and expertise tailored to your family’s unique dynamics and goals. 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!

LUCAS SWATZELL is the Senior Vice President at SageSpring Wealth. For the last thirteen years, he has been refining his craft and joined SageSpring Wealth as a Financial Advisor in 2014. Outside the office, he can be found spending time with his wife, Kayla, and their three children, and is an avid mountain biker and exercise enthusiast.

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