Raising Financially Responsible Kids

Raising Financially Responsible Kids

June 06, 2023

Parenting can be overwhelming, but every parent knows there is only so much time to teach children valuable life tools before they enter adulthood. We all want our kids to be respectful, hardworking, and disciplined, but above all we want them to have the wisdom not to make costly mistakes as an adult.

This is why teaching your children solid financial literacy at an early age is one of the most important things you can do. They will have to deal with finances at some point, so make sure they are equipped with the right tools and knowledge to make financially wise decisions. Here are some introductory tips to help teach your kids wise money habits.

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. (1) 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. (2) 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 whys and hows 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, give your 5-year-old money to buy something at the store so they 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 allowance money 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.  

We’re Here for You

Preparing your children for the future is no easy task. Teaching them how to budget, showing them the difference between a spender and a saver, and even working hard to put money in their college fund are all ways you can set them up for a successful future. And these tips are just the beginning. There are so many different resources at your disposal that it can be hard to know where to begin. 

That’s where we can help! The team here at Stratos Wealth Partners is ready and excited to help you create a financial road map for your children. When you work with us, both you and your children can face the future with confidence. Schedule a complimentary introductory call by reaching out to us at 330-576-3912 or lguiney@stratoswp.com

About Liam

Liam Guiney is partner, financial advisor, and client portfolio manager at Stratos Wealth Partners, an independent investment advisory firm providing personalized financial plans to help clients pursue their goals. With over 20 years of experience, Liam is dedicated to walking his clients through their financial opportunities and challenges, simplifying the complex so they can focus on what’s most important to them. Liam is known for building long-lasting relationships and focusing on individual needs to develop strategies that will help his clients prepare for their ideal retirements. 

Liam graduated from the University of North Carolina Greensboro with a bachelor’s degree and earned a Master of Science at Wake Forest University. He is also a CERTIFIED FINANCIAL PLANNER™ professional. When he’s not working, Liam spends his free time with his wife, Alice, and their son, Nicholas. You can often find him exercising, golfing, or supporting his favorite community organizations through fundraising and volunteering, such as Catholic Charities, the Make-A-Wish Foundation, and cancer research organizations. To learn more about Liam, connect with him on LinkedIn. Or watch his latest webinar: 5 Questions You Should Answer Before You Retire

This material was prepared for Liam Guiney’s use. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.


(1) The No. 1 Money Behavior Kids Learn From Their Parents, https://www.cnbc.com/select/how-kids-learn-about-money/

(2) How To Raise Financially Literate Children, https://www.fcnb.ca/en/guides/how-to-raise-financially-literate-children