Family Member Education
Read our partner Ryan’s ideas on education in the family.
When Does NextGen and New Family Member Education Start?
The short answer: NOW!
No matter the age, from 4 to 94, we can begin or enhance the educational process for NextGen family members, new spouses and even ourselves. Parents can often lead these conversations, but there are advantages to involving a professional, particularly as the topics become more complex.
Money and wealth can bring different perspectives, expectations, and sometimes conflict within families. Starting these conversations when the stakes are relatively low helps establish the trust and communication needed for more difficult decisions later.
Everyone has a different interest in and capacity for wealth education. Be patient, expect to repeat yourself, and keep conversations collaborative. The goal isn't to cover everything at once, but to introduce what's appropriate now and build from there.
Age 4: Start with choices and values
Kids as young as 4 begin to understand relative value by comparing simple choices, like the cost of a candy bar to an apple. These everyday decisions are an opportunity to introduce not only money, but VALUES: how and why we choose to spend it.
The lesson may be simple, but you're establishing something important: money can be discussed calmly and openly in your family.
Ages 8–12: Let them make small decisions
This is a good time to introduce budgeting, spending, saving, sharing, and even basic concepts like stocks and bonds. An allowance can give kids an opportunity to make small, inconsequential financial decisions without judgment.
Ask why they chose something, how long it might last, or whether they'd make the same choice again. Allowing small decisions now gives them experience before the financial consequences become larger.
Ages 12–17: Add autonomy and responsibility
Teens can begin connecting the cost of things to the work required to pay for them and, when appropriate, understanding concepts like active versus passive income. Real expenses, clothes, fuel, and entertainment. This also makes budgeting increasingly relevant.
This is an important age for conversations about confidentiality, needs versus wants, delayed gratification, and family values. Teens may not always agree with their parents' financial choices. Explaining the thinking behind a decision, rather than simply stating the decision, helps them learn how those choices are made.
As they demonstrate responsibility, they can earn greater autonomy. Older teens may also be ready for preliminary discussions about trusts, what they are and why they exist, without necessarily discussing dollar amounts.
Ages 18–25: Move toward stewardship
Legal adulthood brings greater responsibility and more consequential conversations. A working budget and longer-term planning should now be part of the discussion, along with health care, HIPAA releases, insurance, trusts, and stewardship.
Young adults will increasingly make their own decisions, and parents and children won't always agree. The years spent allowing smaller choices, discussing values, and gradually increasing autonomy can make these higher-stakes conversations easier to navigate. A trusted advisor can also provide a neutral perspective as parents begin becoming financial partners while still being parents.
Partners & Spouses: Make room for different experiences
A spouse or long-term partner may bring very different experiences and expectations around spending, saving, sharing, debt, privacy, or wealth. Understanding those differences and creating room for open conversation is important.
Parents can encourage conversations about cost sharing, budgeting, major purchases, and prenuptial agreements while remembering that these need to be THEIR conversations, not ours.
“Our job as parents is to raise responsible adults with high self-esteem who can function independently in life.” David Bork
That independence develops over years of conversations, decisions, increasing responsibility, and sometimes conflict. Starting early gives families a stronger foundation for navigating those differences and making thoughtful decisions together.