Remember when we were kids, and money was this mysterious thing our parents didn’t talk about? A coin in a piggy bank, a handful of allowance dollars, maybe a lesson in saving—but beyond that, financial education was scarce. Fast forward to today: the world our kids are growing up in is more complex, digital, and financially demanding than ever. Teaching them about money isn’t optional—it’s essential.
Back in our day, most of us learned about money the hard way—through mistakes, trial and error, and sometimes painful lessons. Our parents often didn’t discuss budgeting, investing, or debt, leaving us unprepared for adult financial responsibilities. The result? Many young adults enter the workforce without understanding the basics of credit scores, compound interest, or how to grow wealth strategically.
Today, the stakes are higher. Kids are exposed to digital wallets, online shopping, credit cards, and financial apps at a much younger age. Without proper guidance, they risk falling into debt traps, overspending, or missing out on the opportunities that financial literacy provides. By teaching kids about money early, parents can help them:
- Develop Smart Spending Habits: Understanding the value of money teaches children to differentiate between wants and needs. Most people make then spend, rather than make & invest and use the return on investment to cover the “Things” you want
- Build Saving Skills: Simple lessons on saving for goals instill discipline and delayed gratification.
- Learn Investing Basics: Introducing concepts like stocks, bonds, and compound interest early can set the stage for lifelong wealth.
- Avoid Debt Pitfalls: Kids who understand loans and credit are better equipped to make wise financial decisions. Debt can be good if used correctly. If the debt is used to make money that is good debt. If the debt is because of buying “Things” that provide no return on investment, that is bad debt.
- Empower Future Independence: Financially literate kids grow into confident adults capable of managing and growing their resources. They will also be prepared to receive the “gift basket” that you might leave them as part of your estate plan and ensure that the estate will be reinvested properly rather than squandered.
The difference between our childhood and theirs is clear: while we learned mostly by observation or mistakes, today’s parents have the tools and knowledge to proactively guide their children toward financial success. And the best part? Teaching financial literacy is not just about money—it’s about giving kids confidence, responsibility, and the freedom to make choices that will positively impact their lives for decades.
Start the conversation today. If you own a business, you should be paying your children through your company, not an allowance. Then open a savings account together, explain how budgeting works, or introduce them to investing apps designed for young learners. Every lesson planted now is an investment in their future. Don’t let them learn about money the hard way—equip them with the knowledge they need to thrive financially. Give us a call today if you have questions about how to start the conversation, at (775) 384-8124 to schedule a time to speak with one of our experts.
