Every parent hopes to equip their children with the skills they'll need to thrive as adults. While qualities like kindness, responsibility, and a strong work ethic are essential, financial literacy is another lesson that can have a lasting impact throughout your child's life.
The reality is that children form beliefs and habits around money long before they earn their first paycheck. Family conversations, personal experiences, social media, and peers all influence how they think about spending, saving, and wealth. Teaching healthy financial habits early can help lay the groundwork for smarter financial planning later in life.
If you're not sure where to begin, you're not alone. As CFPs and Financial Counselors in Charlottesville, we work with families who want to raise financially confident children but aren't certain which lessons matter most at each stage. Consider this a practical starting point for helping your children develop a healthy relationship with money.
1. Be an Example
If you want your kids to grasp the importance of handling money wisely, let them watch you make financial decisions and model what you want them to learn.
The number-one money habit children learn from their parents is spending habits—good or bad. If you spend money recklessly, your kids will see that. If you rely on credit cards to cover expenses or argue with your spouse about finances, they’ll accept that behavior as the norm. Your actions set a precedent, so be intentional about how you model money management to your kids and let their watchful eyes be a motivator to change any negative financial habits.
2. Start the Conversation
Since many areas of personal finance aren’t visible, sometimes a silent model isn’t enough. That’s why it’s vital to start the conversation now. Talking to your kids about money regularly leads to kids who are more financially literate. It doesn’t have to be a long, drawn-out discussion. Just let them in on your thinking and decision making as you go about your day-to-day life. At the grocery store, explain why you buy the off-brand cereal; at the bank, explain why the bankkeeps your money and why you only take what you need from the ATM. These real-world scenarios help cement the “why” of money in your child’s mind.
3. Give Them Opportunities
For financial understanding to truly sink in, kids need to experience their own successes and failures. On a practical level, have your child earn money and then give them the money to buy something at the store. This helps them learn the value of different items and realize that to obtain something like a toy, an exchange of money needs to take place. Try letting your 10-year-old figure out the cost of a new video game (plus tax), and help them save up money they have earned to pay for it. Let your teenager buy their back-to-school clothes with a set amount of money.
Seeking out financial literacy classes in your area or online is another great way to introduce the topic of money management to your children. As they get older, you may even choose to guide them in investing some of their hard-earned money, letting them make some of the decisions. It may seem a little scary at first, but we all learn best by doing, so allowing your kids to make mistakes can teach them valuable life-long lessons.
Partner With CFPs in Charlottesville
You want to give your children every opportunity to succeed, and that often includes helping them develop healthy financial habits from an early age. Whether you're teaching the value of saving, planning for college, or preparing for future milestones, it's natural to wonder if you're making the right decisions along the way.
The good news is that you don't have to figure it all out on your own. As CFPs and Financial Counselors in Charlottesville, our team at Wilkinson Wealth Management regularly helps families think through the financial choices that shape future generations.
If you'd like to discuss your family's goals and explore strategies for supporting your children's financial future, we invite you to reach out to us at 434-202-2521 or use our Contact Us page to schedule an appointment.
About Jacquelyn
Jacquelyn Nasca is a Financial Advisor at Wilkinson Wealth Management, blending 17 years of experience as an Accredited Financial Counselor® (AFC®) with a background in addressing the emotional challenges surrounding money. A retired U.S. Army and Army Reserves Major with 24 years of service, she holds a Master of Science in Marriage and Family Therapy and is a certification as an Accredited Financial Counselor®. Jacquelyn leverages her unique background in compliance operations and family therapy to help clients eliminate debt, build stability, and plan for the future.
This article was prepared for Jacquelyn Nasca’s use.