How and When to Get Children involved in Financial Planning

Anthony Sandomierski |

 

 

 

 

 

 

How and When to Get Children Involved With Financial Planning and YOUR Finances

One of the most valuable gifts you can give your children isn’t a trust fund or a college education—it’s financial literacy. The earlier you start, the more confident and competent they’ll become in managing money and stewarding family wealth. Here’s a step-by-step approach to nurturing their financial growth from childhood to adulthood:

Start Early: Kids Are Sponges and Parrots

  • Lead by example: Children observe and mimic your attitudes toward spending, saving, and giving.
  • Make money conversations normal: Narrate your financial decisions so they can see your critical thinking/problem solving skills
  • Introduce earning early: Let them do simple tasks for small rewards to connect work with compensation

Teenage Years: Budgeting With a Summer Job

  • Encourage earning: A summer job or part-time gig teaches responsibility and the value of time and effort.
  • Create a mini-budget: Help them set savings goals (e.g., for a car, concert, or tech gadget), allocate spending, and track progress.
  • Open a checking account: Let them manage a debit card with supervision, including online purchases and auto-deposits.
  • Teach “needs vs. wants”: Help them differentiate between necessary spending and impulsive desires.

Teen Years (Continued): Financial Markets 101

  • Explain the basics of investing: Start with simple concepts—what stocks, bonds, mutual funds, and ETFs are.
  • Introduce compound interest: Use visuals or online calculators to show how money grows over time.
  • Discuss risk and reward: Walk through real examples of market volatility and long-term trends.

College Years & Young Adulthood: Budgeting and Financial Independence

  • Create a college budget together: Include tuition, housing, groceries, transportation, and fun money.
  • Talk credit and debt: Educate them on how credit cards work, the importance of paying off balances, and how student loans affect future planning.
  • Set saving habits: Encourage automatic contributions to an emergency fund or Roth IRA if they have income.

Adult Maturity: Involve Them in Your Financial World

  • Assess readiness: Once they’ve demonstrated maturity and independence, gradually open the curtain to your financial picture.
  • Discuss your estate plan: Introduce them to your advisors (financial, legal, tax) and explain your goals and structure.
  • Share your “why”: Talk about the values that drive your financial decisions—charity, family support, long-term security.
  • Delegate responsibilities: Involve them in tasks like managing properties, helping with business finances, or reviewing investment reports.
  • Consider a family meeting: Host annual or semi-annual discussions around wealth stewardship, family mission, and next-gen involvement.

Final Thought:

Being in the position we are, we see many clients in different stages with their children (infants to adult children in their senior years).  We have vast experience in helping clients navigate issues that arise with their children.  CHILDREN DON’T WANT TO LISTEN TO THEIR PARENTS.  We can be the soft spot.

ALSO, “do it yourselfers” tend to lose sight of the fact that they will not be around forever.  Whether it be a cognitive or physical health issue or their passing, they lose sight that they may have built up wealth that could last generations.  You could use a “second set of eyes” on your financial picture to help the next generation navigate. 

 

Anthony Sandomierski – Financial Advisor. Jason Gordon - Financial Advisor. Securities offered through Avantax Investment Services℠, Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory Services℠. Insurance services offered through an Avantax affiliated insurance agency. Oujo Wealth Strategies is independent of Avantax.