5 Ideas to Teach the Next Generation About Money

Most parents and grandparents can relate to the challenges of teaching the next generation about money, whether it’s explaining the difference between wants and needs, encouraging them to save, or helping them understand the value of a dollar.

Learning about money doesn’t have to be complicated or fraught with conflict. Some of the best financial lessons come from everyday experiences, playful challenges, and hands-on activities. By weaving money lessons into daily life, you can help your children build healthy financial habits and grow into responsible adults.

Here are some creative ways this can happen:

1. The Toy Store Price Challenge

This works well with younger children and is a great way to turn a fun excursion into a money-learning experience as well. Give kids a budget for what you were going to spend anyway and let them figure out how to maximize their money. Teach them about price comparisons, unit pricing, and the trade-offs of choosing the newest thing versus something that is on sale.

2. The Video Game Economy Lesson

A lot of kids love video games, so why not meet them where they are? You may not realize it, but games like Minecraft, Fortnite, or Animal Crossing involve earning, spending, and sometimes even using virtual currency. Use this opportunity to discuss topics like supply and demand (why some in-game items are more expensive), getting value for what you are paying, saving for big purchases, and impulse spending. 

3. The "Choose Your Career" Exercise

The middle school my kids attended had this as part of their math curriculum. I always thought it was a great way for middle and high schoolers to make future financial planning feel real. Even if your school doesn’t have a formal program, have kids pick a career they’re interested in and then research average salaries, job responsibilities, and the education required. Next, have them look up tuition at different types of colleges and universities that offer the type of degree they will need. This is also a good time to start talking about the amount of financial support you are willing and able to provide for their higher education. To take it a step further, help them create a simple budget based on their potential earnings—factoring in expenses like rent, transportation, and student loan payments. This eye-opening exercise can help them understand the connection between career choices and financial independence. It may even help them appreciate the scope of support they get from you!

4. The Philanthropy Project

Charitable giving is important for many of our clients. Talking with children about why you donate to the charities you do can be an invaluable way to start the next generation on a path of philanthropy. Help your child research charities or find local ways to give back to the community. Give them an allotment and let them choose how to get involved. Encourage them to add some funds as well. It will give them some ownership and teach how giving can be rewarding and impactful. This exercise can be a good warm up for the next topic.

5. Host a Family Meeting

As children and/or grandchildren get older, many clients begin to elevate their conversations from basic financial education and charitable giving lessons to more in-depth discussions about why they feel the way they feel about money. Sharing your money values and talking as a family about different viewpoints that other family members may have, can build a foundation for making consistent, purpose-driven choices, while reducing financial stress and potential arguments.

While some families have more formal meetings, oftentimes, these conversations start more casually with each person sharing what is important to them and how they have arrived at their own personal values. Some examples of topics to share:

• Did you prioritize saving for a rainy day over purchasing luxury items? Why?
• Are you involved in philanthropy, showcasing the value of giving back? How did you select the charity you support?
• Are there values represented by your parents and grandparents that you’d like to carry forward?

For some families these initial conversations evolve into forming a Family Mission Statement where they list out core values that are important to everyone in the group and is something that serves as a roadmap for future family financial decisions, but that does not have to be the goal.

As parents and grandparents, we strive to educate the future generations to help them to be as successful as possible. Talking about money can be difficult, but the earlier you start with some age-appropriate conversations, the better prepared your loved ones will be to venture out on their own with a solid financial education.

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This information is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product, security, or concept. These materials are not intended as any form of substitute for individualized investment advice. The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own. You should not treat these materials as advice in relation to legal, taxation, or investment matters. Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisers.