When it comes to leaving a legacy, the dollars we pass down are only part of the story. The real gift is in the lessons—especially when it comes to money.
Teaching kids and grandkids about saving and building strong financial habits doesn’t have to feel like a lecture. In fact, starting young gives them a major head start. Children as young as six already demonstrate awareness of the concept of saving versus spending, and those attitudes often stick with them into adulthood.
Start With Simple Concepts
Kids don’t need to understand compound interest before they understand that money runs out if you spend it all. Start with the basics:
- Saving vs. Spending: Use a clear jar or piggy bank so they can see their savings grow.
- Needs vs. Wants: Talk about everyday decisions—like choosing groceries over toys.
- Earning: Tie small rewards to chores or tasks to build a connection between work and income.
These conversations can happen in the car, at the store, or during family meals. The key is repetition and relevance.
Make It Hands-On
Learning by doing is one of the most effective methods—especially for financial education.
Try this:
- Let kids budget for a small gift or trip and work toward it.
- Open a savings account together and track progress over time.
- Match their savings like a mini 401(k)—it’s fun and reinforces the value of saving.
For older kids, supervised spending through prepaid cards or budgeting apps offers a safe space to make decisions—and mistakes—with your support.
If you’d like more ideas of financial education activities for children, The Council for Economic education offers free Family-at-Home Financial Fun Packs available for all ages.
Lead by Example
Children and grandchildren are always watching. If they see you budgeting, saving, and making thoughtful money decisions, they have a better chance to pick up those habits too. Be honest about your own financial journey—including your mistakes.
“We can’t afford that right now” becomes powerful when followed with, “but here’s how we’re saving for it.”
Make Conversations Normal
Too many families avoid talking about money—and that silence can lead to confusion and missteps later. Only 34% say their family regularly talks about investing, but 7 in 10 children report looking up to their family members as financial role models.
Make it easy and approachable by:
- Sharing stories about how your parents or grandparents handled money
- Creating a family savings goal (like a vacation or game night fund)
- Celebrating small financial wins—together
Saving money isn’t just about dollars—it’s about values: patience, responsibility, and planning for the future. The earlier we help our kids and grandkids connect those dots, the stronger their financial foundation may be.
Sources:
Fidelity. 2022 Teens & Money Study.
Meraji, S. M., & Tagle, A. (2021, August 3). Want to teach your kids about money? Start by including them in the conversation : Life Kit. NPR.org.
Smith, C. E., Echelbarger, M., Gelman, S. A., & Rick, S. I. (2017). Spendthrifts and Tightwads in Childhood: Feelings about Spending Predict Children’s Financial Decision Making. Journal of Behavioral Decision Making.
T. Rowe Price. PARENTS PUTTING ON A FINANCIAL FAÇADE ARE MORE RELUCTANT TO DISCUSS MONEY WITH THEIR KIDS.
Washington University in St. Louis, Center for Social Development. (2013). The role of savings and wealth in reducing “wilt” between expectations and college attendance.
This article is meant to be general and is not investment or financial advice or a recommendation of any kind. Please consult your financial advisor before making financial decisions. For more detailed information, contact, a financial advisor with Gregory Ricks & Associates, Inc. offering investment advisory products and services through AE Wealth Management, LLC. (AEWM) Insurance products are offered through the insurance business Gregory Ricks & Associates, Inc. AEWM does not offer insurance products. The insurance products offered by Gregory Ricks & Associates, Inc. are not subject to Investment Adviser requirements. Firm does not offer tax or legal advice. 3154659 – 7/25