Alas, financial literacy isn’t always something that kids and teens pick up readily at school or in our culture. Fortunately, you can teach your youngest family members these important life skills, including how to save money, spend wisely, and invest strategically.

A great place to start is by reflecting on how you and the other adults in your family approach the topic of money. What financial mindset, lessons and values do you want to impart?

For example, do you prioritize sharing your money with family? Or do you want your children to eventually make their own way financially, with encouragement and wisdom from you? Do you give your children an allowance,¹ pay them for chores, or a combination of both? What role might charitable giving play in your overall financial plan?

Not only can these questions help guide the financial conversations you want to have with your kids, but also they can reinforce the example you want to set for them.

Tailor saving and investing lessons to their age

Take an age-appropriate approach to teaching the value of saving — and start when children are young. For example, a kindergartener might have a piggy bank or change jar where they store their money for saving, spending and sharing.

An older child can open a savings account with their local credit union. A teenager may be ready to have an investment account in their own name and build a rapport with a financial advisor who can walk alongside them from early adulthood.

» Insight: If your child or grandchild has a large savings or investment goal, they may welcome your advice and support as they work to reach it. They might draw inspiration from hearing about how you saved or invested to pay for something important to you, or just from having you cheer them on!

Be strategic about financial gifts

Gifting money for education, creating trusts to distribute your assets when the time comes, and “giving while living” to reduce eventual estate taxes may benefit your family’s youngest generation for years to come.

When transferring significant assets, a little strategic planning can go a long way. It can help you ensure that your gift has the intended impact and may also help you identify ways that you, too, can reap rewards for your generosity.

For example, before making a significant monetary gift to a child or grandchild, you may want to talk with a wealth management team about:

• Your goals for the gift. Is it meant to be for college, buying a home, investing for retirement or something else?
• What conversations might be warranted with other professionals (e.g., CPA or accountant) to structure the gift in ways that might help reduce tax obligations?
• Who will be entitled to access the money and make decisions about how the gift is used?

» Insight: If you’re gifting to a grandchild, niece or nephew, it’s also a good idea to talk with the recipient’s parents first to align the gift with other savings they may have in place for the child. If you’re gifting to an older teen or young adult, an upfront conversation with them can help make sure your gift supports their goals.

Teach negotiation skills

Knowing how to make the case for a fair exchange of value is a critical life skill. Encouraging your children or grandkids to negotiate when appropriate can build the confidence they need to bargain for better pay and compensation packages when they reach adulthood. They can also apply negotiation skills to other areas of their lives, including making deals and reaching compromises.

At the same time, it’s wise to teach your kids that not everything is up for negotiation. Let them know what your non-negotiables are, like safety rules or parental limits on what they can buy with their money.

» Insight: Encourage kids to practice by negotiating things like allowances, chores or savings goals in a way that considers both their needs and the other person’s perspective. By modeling respectful, fair negotiation and showing them that it’s a conversation rather than a confrontation, you’ll help them build lifelong skills that go beyond finances.

Discuss debt’s uses and risks

Social media discussions of debt sometimes oversimplify the risks and benefits of borrowing money, so you might not want to let the internet be your children’s or grandchildren’s only source of information on the subject.

Age-appropriate, practical conversations can help their understanding grow over time. With tweens, for example, you might explain why you make house or car payments and how those loans benefit your family.

Later, you can introduce the idea of opportunity cost. For example, if the rate on your car loan is less than the average return on your investments, you can do some back-of-the-envelope math to show your teen why it made financial sense to borrow rather than pay cash.

Older teens need to know what a credit score is, how to build theirs, and why a healthy one might help them not only get car and home loans at good rates but also increase the likelihood that a landlord will approve them to rent an apartment when they’re ready to launch.

» Insight: Teens also need to understand that borrowed money must be paid back on time, often with interest, to avoid expensive penalties and credit score impacts. Again, some quick math about a real or hypothetical loan can show young people how quickly late fees and interest can add up so they’ll be better prepared to use debt responsibly as independent adults.

Connect the younger generation to the resources they’ll need

Moving into adulthood is easier with trusted guidance. Your wealth management team can be a great resource not only for you, but for your children and grandchildren, as well. Introducing them to your financial advisor in their late teens or early adulthood can help ease the transition to financial independence. In fact, in a 2025 study conducted about parents and finances,² 56% of parents surveyed said they’ve already introduced their children to their financial advisor.

Experienced wealth managers who already know your family can reinforce and build on the financial education and values you’ve imparted. And this can prove helpful when the time comes for your children or grandchildren to pass on their wisdom and wealth to the next generation. 

The takeaway

Raising financially literate adults is a team effort. Parents, grandparents and trusted financial advisors all play important roles in helping young adults become financially independent. By understanding your distinct financial needs and goals, RBFCU Wealth Management can help you create strategies that work for you and your family.