Nurturing Financial Confidence in Children

By Tama Smith & Chris Moreton | Aug 13, 2022 |

Parents and caregivers are the earliest influences in a child’s life. The conversations and habits children observe lay the groundwork for how they communicate and behave as adults. That applies to their financial maturity, too.

Financially Confident Children

Parents and caregivers are more than just guardians – they’re teachers, too.

Money is regarded by many as a taboo subject for its reputation of ruffling feathers. One may worry that discussing salaries could expose income disparities that introduce discomfort to a relationship. A friendly suggestion on how to manage finances may be perceived as an unwanted lecture. To preserve relationships, keeping the conversation away from money can be considered a healthy practice – but is it healthy to keep money talk away from children?

The Choose FI Foundation reported that money habits start developing around the age of 7. A study done by Greenlight revealed that only 1 in 4 teens are financially confident. Instead of learning about the advantages of compound interest, how to establish a line of credit, or participate in the stock market, they joined these statistics:

  • 49% of teens have never made a budget
  • 46% of teens are unable to describe a 401(k)
  • 41% of teens aren’t sure if they have to pay taxes or how they would do so
  • 32% of teens can’t accurately describe the difference between a debit and credit card

Financial Literacy: What to teach and how?

If you’re one of the many who refrain from talking about money with friends and family, you may be wondering, “Where do I begin?” Fortunately, Brighton Jones has got you covered.

Financial Education Strategies for Parents and Caregivers of Young Adults

Our programs, FinEd and CHOICES, provide resources and tools you can bring into your home to start discussing money comfortably with your children.

Teaching the Next Generation Better Money Habits – Our CEO, Jon Jones, shares some of the philosophies and tactics he and his wife, Gretchen, used when teaching financial responsibility to their children.

How to Help Your Adult Children Make Good Credit Decisions – A guide to help parents and caregivers start the conversation with their young adult children around how to be strategic and effective with their credit.

How to Talk Money With Family – Suggestions for how to set financial expectations with your kids, communicate the impact of college expenses, and help them plan for a financially confident future.

Educational Resources

School’s in Session: Online Finance Workshops for Young Adults – Enjoy some personal finance workshops for high school and college students!

Budgeting Exercises to Help Your Kids Develop Smart Money Skills – Teaching your children how to make their own budgeting choices can lead to healthier relationships with money. The autonomy and control budgeting manifests can also help children understand the impact of decision making.

Budgeting and Investing for Young Adults – These recorded online workshops are hosted by our advisors and offer actionable financial tips.

Helping High School Graduates Navigate a New World – While this article is primarily focused on advice for students who plan on attending college during the COVID pandemic, it does include some great finance tips that parents and caregivers should share with their teens regardless of the state of the world.

Essential Estate Planning for 18-Year-Olds – It’s never pleasant talking about what to do when the worst happens, but it’s important that every 18-year-old complete these documents, just in case.

FinEd Webinar: Demystifying the College Application Process – Help your children take a step towards financial wellbeing with this workshop about budgeting for college students.

FinEd Webinar: Investing – Children will learn the basics of investing and take their first steps in creating a personal investment plan.

Since 2000, Brighton Jones has helped more than 4,000 individuals and families align their wealth, their passions, and their purpose to live a richer life every day. We are one of the fastest-growing wealth management firms in the U.S., with more than $17+ billion in assets under advisement.

This article was a collaborative effort including contributions from Madison Clark, one of our 2022 summer interns, and the WLRL team. 

Let’s talk

Whether you have a specific question, or you’re interested in learning more about how our approach can be tailored to your situation, we’d love to hear from you.