From Piggy Banks to Portfolios: Teaching Your Kids (or Grandkids) About Money

Erica Conover |

In an era of digital payments and instant gratification, teaching children about money has never been more challenging—or more important. At Moore Financial, we believe that financial literacy is one of the most valuable gifts you can give to the next generation. Whether you're a parent or grandparent, you play a crucial role in shaping how children understand and manage money.

Why Start Early?

Financial habits form surprisingly early. Research shows that children as young as three can grasp basic money concepts, and by age seven, many money habits are already taking root. Early financial education:

  • Builds confidence in making financial decisions
  • Develops patience and delayed gratification skills
  • Creates a foundation for future financial independence
  • Reduces the likelihood of debt problems later in life

Age-Appropriate Money Lessons

Ages 3-5: The Foundation Years

  • Introduce the concept of money through play
  • Practice counting coins and identifying different denominations
  • Use clear jars instead of piggy banks to make saving visible
  • Demonstrate simple transactions when shopping

Ages 6-10: Building Basic Skills

  • Help them open their first savings account
  • Introduce the concept of earning through age-appropriate chores
  • Teach comparison shopping and basic budgeting
  • Start conversations about needs versus wants

Ages 11-14: Expanding Financial Awareness

  • Introduce the concept of compound interest
  • Discuss how credit cards work (and their potential pitfalls)
  • Involve them in family budget discussions for vacations or special purchases
  • Consider matching their savings for important goals

Ages 15-18: Preparing for Independence

  • Help them get work experience through part-time jobs
  • Teach basic investing concepts with a small custodial account
  • Practice budgeting for real-life scenarios they'll soon face
  • Discuss college financing options and the impact of student loans

Beyond the Basics: Teaching Financial Values

Money education isn't just about mechanics—it's about values. Consider how you can incorporate these deeper lessons:

  • Generosity: Set aside money for charitable giving and let children choose causes they care about
  • Patience: Help them save for meaningful purchases rather than buying impulsively
  • Work ethic: Connect effort with earning to build appreciation for the value of money
  • Contentment: Model finding joy in experiences rather than just accumulating possessions

The Grandparent Advantage

  • Grandparents often have a unique opportunity to reinforce financial lessons:
  • Share stories about your own financial journey, including mistakes and lessons learned
  • Create special saving traditions for meaningful experiences together
  • Consider contributing to education funds while teaching about the power of long-term investing
  • Use gift-giving occasions to introduce financial concepts rather than just material items

The Moore Financial Perspective

At Moore Financial, we believe in multi-generational financial planning that includes educating younger family members. Many of our clients find that involving children or grandchildren in age-appropriate financial discussions creates a legacy of financial wisdom that extends far beyond monetary inheritance.

Interested in creating a financial education plan for the young people in your life? Contact our team to discuss strategies tailored to your family's values and goals.