“We want our kids to be financially responsible, but talking about wealth too soon or too often—or both—feels like it could work against us. What is the right path forward?”
I hear these types of questions often from parents and grandparents managing the responsibilities that come with significant wealth. For many families, knowing when and how to involve children in financial discussions can be deeply personal, but it can also be quite perplexing. Questions about timing, level of detail, ideas around gifting and family loans—it all matters.
If this strikes a chord, don’t worry. There is no one-size-fits-all rulebook for how to talk to younger generations about money and wealth. Every family is different.
There are, however, guiding principles that can help you introduce the topic thoughtfully and constructively with younger generations, ensuring they are not only prepared to inherit wealth but also to understand, respect and sustain it.
Why the Timing Matters
Children begin forming ideas about money long before they receive their first allowance. Research from the University of Cambridge[i] shows that money habits can start to take shape as early as age seven. Even in households where money is rarely discussed, children are paying attention to spending, saving and attitudes toward work. By modeling healthy financial behavior and initiating small, age-appropriate conversations, you’re already shaping their mindset.
‘Financial literacy,’ as it’s known, makes children more informed and helps them make smarter choices later in life. According to the Champlain College Center for Financial Literacy[ii], students who receive financial education in high school are more likely to budget, avoid high-interest debt and repay student loans on time. They also show improved credit scores and are less likely to fall behind on bills.
Subjective well-being also improves over time. Young adults who received financial education in high school report feeling more confident with budgeting, better prepared for emergencies and less stressed about money, even more than a decade after graduation.
Parents and grandparents often ask me if there’s a “perfect age” to start this education and a curriculum for carrying it out. The short answer is no. But there are natural milestones that can help guide when and how to bring children into the conversation.
Elementary-aged children can learn the basics of earning, saving and giving. And there are plenty of everyday situations that offer teaching moments, like explaining that buying things at the store requires work, and that taking a family vacation involves work, saving and budgeting. Use these opportunities to build up financial muscle.
Middle schoolers can start thinking about budgeting and charitable choices. By high school, many teens are ready for discussions about investing, credit and longer-term goals. In college or early adulthood, they may be ready to understand the structure of the family’s wealth and the values that underpin it.
Still, age isn’t the only factor. Maturity often matters more than chronology. Some kids show early curiosity and accountability. Others take longer to grasp abstract or long-term concepts. The complexity of your financial situation and your long-term goals for your children—whether that means business succession, philanthropy or personal financial independence—should also influence your timing and approach.
Getting Started
The conversation does not need to start at the family’s net worth level. In fact, I would not advise that at all. In my view, it’s better to start with values: hard work, generosity, long-term thinking and stewardship. Use major undertakings, like retirement planning and charitable giving, to reinforce those values.
A great way to kick off these conversations is to be inquisitive, by asking big questions like: “What does success mean to you?” or, “How would you spend $10,000?” These kinds of questions can reveal a younger person’s mindset and create opportunity for future conversations.
Trusted advisors can play a role as well. Whether it’s your financial planner, estate attorney or philanthropic consultant, these professionals can offer structure and guidance, especially during family meetings or when setting up longer-term governance and legacy plans.
As far as common pitfalls to avoid, I think it’s important to be realistic about your children or grandchildren’s readiness for wealth discussions before jumping in. Sharing too much, too soon—especially with younger generations that don’t yet have the necessary tools—can create problems. On the other end of the spectrum, avoiding the topic entirely can lead to confusion, anxiety, or a lack of preparation. And while many families feel tempted to have “one big talk,” the truth is that conversations around wealth should be ongoing. They should evolve as younger generations do.
I mentioned earlier that there is no one-size-fits-all rulebook for talking with kids about money and wealth. But there is a right approach, and it’s one that’s intentional, values-driven and sustained over time. Preparing the next generation for wealth means more than teaching dollars and cents. It’s also about nurturing perspective, stewardship and a sense of purpose. When done well, early and ongoing dialogue can help prevent entitlement, encourage generosity and lay the groundwork for a legacy that lasts.
At Newport Capital, we often help families design customized education plans, facilitate family meetings and coordinate with estate and tax professionals to ensure your legacy is passed down with purpose and respect for what matters most.
[i] Source: “Habit Formation and Learning in Young Children,” University of Cambridge.
[ii] Source: “Is Your State Making the Grade: 2023 National Report Card on State Efforts to Improve Financial Literacy in High School,” Champlain College Center for Financial Literacy.
