By Andrew Mason, CFP®, AIF®
When families come to us at American Trust Wealth, they are often thinking about retirement, building wealth or leaving a legacy. Our individual investor services cover everything from retirement planning to investment management, giving individuals and families a clear path toward their long-term goals. But one question we rarely hear — and wish we did more often — is:
“How do I help my kids become confident, capable stewards of money?”
That question goes beyond parenting. It is one of the most powerful long-term strategies for generational planning. And like any investment, the earlier you start, the greater the return.
Why financial literacy matters for kids
Financial literacy is more than understanding dollars and cents. It is the foundation for how children will approach saving, spending and investing throughout their lives. Money habits form earlier than most parents realize — long before a first job or first credit card.
Children absorb financial behaviors when they watch you at the grocery store, see how you budget at the kitchen table or hear you talk about saving for retirement. By introducing age-appropriate lessons early, you build confidence and prevent costly mistakes later.
Building money habits at home
Save, spend, share
One of the simplest and most effective strategies is dividing money into three categories: save, spend and share. Whether you use jars, envelopes or a kids’ banking app, the idea is the same:
- Save for something in the future
- Spend on something fun right now
- Share to support a cause that matters to them
This approach teaches discipline and empathy while building the foundation for budgeting, investing and charitable giving.
Teaching kids about investing
Children do not need to understand stock market theory to grasp the power of growth. Show them how compound interest works with a simple chart or calculator. Open a custodial investment account and let them watch their savings grow. Better yet, involve them in picking a company they recognize — like Disney or Apple — and track its progress together.
Modeling healthy financial behavior
Kids learn far more from what you do than what you say. Talk openly about your decisions: why you budget, save for retirement or work with a financial advisor. If you’re considering professional guidance, explore our full range of wealth management solutions to see what fits your family’s needs.
Financial skills for students at every age
So, when should you start? The short answer is earlier than you think.
- Elementary school: Counting coins, understanding needs vs. wants
- Middle school: Budgeting an allowance, learning about savings accounts
- High school: Basics of credit, student loans and an introduction to investing
Breaking financial literacy down by age makes the learning process less overwhelming and more natural.
Teaching kids about generational wealth
In the financial industry, we often talk about legacy. But legacy is not only about what you leave in a will — it is about the values and knowledge you pass down now.
Teaching kids financial literacy means teaching them how to preserve and grow wealth for decades. Whether you are investing in a 529 plan, creating a family trust or simply reminding your child to “pay yourself first,” every step builds toward a stronger financial future. If you would like a deeper dive into financial planning for families and why starting early matters, check out our full guide on financial planning for families.
Final thoughts: Make money conversations normal
Money should never feel like a mystery. When we make it normal to talk about earning, saving, investing and even making mistakes, kids grow up confident in their financial choices.
And confidence, more than any single investment, is what carries through a lifetime.
Want more strategies to build financial literacy in your family? Contact American Trust Wealth to explore planning tools that grow with your children.