Teaching children about money is just as important as saving money for them. In fact, implementing financial literacy for children in the family is a key part of preserving family wealth across generations.

Many young adults struggle with basic financial skills – surveys show that only about 48% of Americans could answer fundamental personal finance questions correctly. And today’s teens often feel unprepared: about 74% of U.S. teens say they lack confidence in their financial knowledge. Perhaps that’s no surprise when only 52% of teens report learning about personal finance in school, and 75% say they rely primarily on their family for financial education. The message is clear: parents (and grandparents) play a huge role in shaping kids’ money habits and attitudes.

Financial Education Is Gaining Ground in Schools

The good news is that financial literacy for children is gaining more attention in schools. As of 2024, 35 U.S. states require a personal finance course for high school graduation – a significant increase in recent years. Classes in budgeting, saving, credit, and investing are becoming more common in curricula. If your college-bound teen is among those getting a money management class at school, that’s a great start.

However, regardless of the school requirements, real-life practice and family conversations are crucial to reinforce these lessons. HNW families in particular should be intentional about this: growing up with financial comfort can sometimes shield kids from learning money skills, so it takes conscious effort to impart those lessons.

Five Practical Ways to Build Financial Skills

1. Start Early with Basic Concepts

Even young kids can learn simple money ideas. Encourage saving by using a clear jar or piggy bank so they can see their money grow. Introduce the concept of earning by linking allowances or rewards to age-appropriate chores. Research shows that children who get financial education by around age 7 tend to develop healthier money habits later in life.

2. Use Real-Life Teaching Moments

Involve your kids in day-to-day financial decisions. For example, set a budget together for back-to-school shopping or let them help compare prices in the grocery store. If you run a household budget or pay bills, show them in simple terms how it works. Teenagers can be brought into discussions about saving for college, or what things like insurance and taxes are – life events will eventually make these concepts relevant, and early exposure helps demystify them.

3. Leverage Tools and Technology

Today, there are many apps and tools designed to teach kids about money. Some families use prepaid debit cards or banking apps for teens that allow parents to monitor and set limits, giving young people hands-on practice with managing a balance. There are also stock market simulation games and beginner investment apps that can introduce older kids to investing with limited funds. (For instance, a parent might let a teen pick a few stocks or mutual funds to follow, or even contribute a small amount to a custodial investment account to learn about the market.)

4. Encourage Earning and Entrepreneurship

Nothing teaches the value of a dollar like earning it. Encourage teenagers to take on part-time jobs, summer internships, or even entrepreneurial projects (like tutoring, lawn care, selling crafts, etc.). For HNW families, jobs can still be valuable even if not financially needed – the experience builds work ethic and money management skills. Some families even “hire” their kids in a family business or pay them for certain duties, then help them save a portion of those earnings (for example, contributing to a Roth IRA or a “Trump Account” for teens if they have earned income).

5. Discuss Values and Giving Back

Financial literacy isn’t just about numbers – it’s also about responsible decision-making. Talk with your children about your family’s values regarding money. This might include the importance of living within means, avoiding excessive debt, and being charitable. Involve them in philanthropic activities, like choosing a charity to donate to or volunteering, to teach that wealth can be a tool for good. HNW parents often find that involving children in philanthropy helps instill humility and perspective about money’s purpose beyond personal consumption.

Make It a Habit, Not a One-Time Talk

Remember that consistency is key. Make financial literacy for children an ongoing priority in your home. Set up a monthly “money meeting” with your teen to review their bank account or credit card statement (if they have one), or simply to answer questions. By normalizing these conversations, you send the message that it’s okay to talk about money and ask questions. Over time, your children will gain the skills and confidence to handle their own finances responsibly. This not only prepares them for adulthood – it also gives you peace of mind that the wealth you pass on will be stewarded wisely.

Raising financially literate children is one of the best investments you can make in your family’s future. At Tiempo Capital, we help high-net-worth families integrate financial education into their legacy planning to ensure wealth is preserved and managed wisely for generations.

To support this mission, we’ve written a practical, engaging book on teaching financial literacy to teenagers—perfect for parents looking to start or strengthen these conversations at home. You can purchase it here.

Visit the clients we serve page to see how we support families like yours, or contact us today to start the conversation.

This material is for informational purposes only and does not constitute financial, legal, tax, or investment advice. All opinions, analyses, or strategies discussed are general in nature and may not be appropriate for all individuals or situations. Readers are encouraged to consult their own advisors regarding their specific circumstances. Investments involve risk, including the potential loss of principal, and past performance is not indicative of future results.

Sources:

Cicket Media (2025) “Building Money Smarts: How Early Financial Education Empowers the Next Generation”

Consumer Financial Protection Bureau (2016) “Building Blocks to Help Youth Achieve Financial Capability: A new model and recommendations”

Council for Economic Education (2024) “2024 Survey of the States.”

Woodall, Idil, and Keith Hodges (2024) “Financial Literacy Statistics: Financial Knowledge by Key Demographics,” Moneyzine.

Amber Goff (2025) “Teaching kids about money: It’s never too early to start,” West Virginia University