What Our Kids Should Be Learning About Financial Roles at Each Age

Engaging children in financial conversations is a wonderful way to equip them with the skills needed to manage their money confidently throughout their lives. By tailoring discussions to their age and stage, you can help them develop a solid foundation for financial success.

Young Children (Ages 5-12)

For young children, focus on introducing basic financial concepts in an enjoyable and engaging manner. At this stage, they can learn about:

• Earning, saving, and spending money
• Differentiating between needs and wants
• The importance of setting financial goals and making informed decisions

Use interactive tools like age-appropriate books, games, and apps to make learning about money fun. Encourage them to save part of their allowance or gift money to foster good financial habits early on.

Teenagers (Ages 13-18)

As teenagers, children are ready to take on more financial responsibilities. At this stage, you can guide them through:

• Opening and managing a bank account
• Creating and sticking to a budget
• Understanding the power of compound interest and the benefits of early saving and investing
• Planning for college expenses

Encourage part-time jobs or small business ventures to give them practical experience in earning and managing money. Discuss the importance of setting both short-term and long-term financial goals and developing a strategy to achieve them.

Young Adults (Ages 19-25)

Entering adulthood often brings new financial challenges, such as managing one’s first salary and navigating independence. It’s a pivotal time to include them in family financial discussions, particularly after graduation. Many young adults are dealing with new financial responsibilities while adjusting to life after college. Providing support and guidance during this time is crucial. Financial advisors can help them understand:

• Managing their first salary and creating a comprehensive budget
• Saving for retirement and utilising employer-sponsored plans
• Understanding credit scores, debt management, and the responsible use of credit cards
• Renting an apartment, buying a car, and managing other essential expenses
• Building an emergency fund for unexpected costs

Offering practical advice on significant decisions like career choices, student loan repayments, or saving for a home can be invaluable.

Adults (Ages 26+)

As adult children mature, conversations should evolve to cover more advanced financial topics and include discussions about financial and estate planning. Key areas to address include:

• The importance of estate planning and their role in it
• The family’s wealth management strategy and their potential contributions
• Buying a home, starting a family, and saving for their children’s education
• Navigating major life transitions such as marriage, divorce, or career changes

Encourage open dialogue about financial goals and responsibilities, and support them as they take on greater financial responsibilities and plan for their long-term security.

By aligning financial education with each life stage, you can help your children build a strong foundation for their financial future and ensure a smooth transition of wealth and responsibilities through the generations.

Ready to take the next step? Connect with the experts at Oreana Private Wealth to get tailored advice and support for your family’s financial journey. Reach out today to ensure a brighter financial future for your loved ones.