Focus On... Raising Financially Responsible Kids

As parents, one of the greatest gifts we can give our children is a healthy relationship with finances, one that balances confidence, responsibility, and purpose. This episode offers practical ways to help children build strong financial foundations by understanding not just how to make good decisions, but why those decisions matter.

When to Start the Conversation

One of the most common questions Adrienne and Will hear from parents is, “When should I start talking to my kids about money?” The answer, Will says, is simple: start now. “Sooner is better than later,” he urged parents. By introducing financial concepts early, parents can help set the foundation for healthy, lasting money habits that carry into adulthood.

Adrienne added that teaching kids about money isn’t just about numbers. “There are really three elements to good financial decision-making: autonomy, responsibility, and understanding delayed gratification,” said Adrienne. “And while talking about these things is important, having life experiences is even more important.”^[1]

She encouraged parents to give kids age-appropriate opportunities to make their own choices and mistakes, helping them internalize lessons. As Adrienne put it, “A five-dollar mistake can teach more than a lecture.”

Overcoming Taboos About Money

Many parents hesitate to start the conversation because they’re unsure what to say or how much information to share. The key, according to both Adrienne and Will, is to start small and make money a natural part of everyday life.

For young children, that might mean discussing simple spending decisions at the grocery store. By middle school, the conversation can expand to include topics like taxes or entrepreneurship. Adrienne shared the story of her own child launching a small slime-making business to sell to classmates, quickly learning about costs, profits, and efficiency.

For older kids, tools like Greenlight and other budgeting apps can help make abstract ideas tangible. By high school and college, the focus shifts to budgeting, credit, and more sophisticated investment topics.

“Don't let the fear of tough questions stop you from starting these conversations,” Adrienne advised. “Almost every parent I've ever worked with fears the question, ‘How much money do we have?’ or ‘How much money do I get?’ These are tough questions, and most parents aren’t ready to answer them, even with older children.”

She encouraged parents to prepare a few responses in advance to handle tricky questions: “Even something like, ‘I'm actually not ready to share that with you,’ or ‘I don't know the answer yet,’ or ‘Why do you want to know?’ Sometimes that opens up a whole different conversation.”

Teaching the “Why,” Not Just the “How”

Understanding financial mechanics is important, but equally vital is connecting financial lessons to a family’s values and purpose.

Will sees philanthropy as a powerful tool for helping children understand the “why” behind money: “Philanthropy can be a really interesting tool. It gives them visibility into the investment process, lets them understand how money can compound and achieve a mission, [and] takes it out of the self. It's suddenly about the community, and it gives families a great forum to then talk about values.”

For Will, philanthropy also creates space for thoughtful family discussions about priorities and purpose: what issues matter most, which causes align with their values, and how they can contribute to the world in a meaningful way. By taking an active role in giving, children begin to see the purpose behind money and the broader impact it can have.

When (and How) to Give Kids Money

Another frequent question Adrienne and Will hear is, “When should I start giving money to my kids?”

Will’s advice: when they’re ready to handle it. “It’s a process,” said Will. “Start small, give them some independence, and let them make mistakes. As they prove themselves over time, you can trust them with more responsibility.”

Transparency also matters as children become adults, helping them make informed choices when they eventually manage their own resources. For example, if parents plan to contribute to their grandchildren’s education, sharing that information can help their adult children anticipate future expenses, make informed decisions, and align their own financial planning with family priorities.

At the same time, Adrienne emphasized that fostering independence during formative years is critical for personal growth. “Developing autonomy and a sense of self is hard to achieve with an unlimited supply of money,” she said. “So, in those formative years, we often advise parents, ‘Let your kids be independent, and let them figure out who they are in the absence of your money.’”

By encouraging independence and setting thoughtful boundaries, parents can help their children cultivate resilience, responsibility, and a deeper understanding of their own values.

Common Mistakes Parents Make

Even with careful planning, parents can stumble when helping their children become financially independent. Adrienne and Will agree that one of the toughest transitions comes after college.

“The post-college years are tricky,” Adrienne explained. “Parents want to bubble wrap their kids so nothing bad can happen. Providing a safety net is fine, but that’s different than a free ride. A free ride removes all responsibility, and it means there are no consequences for what your kids might do in the world.”

Instead, she encouraged parents to offer support through structured guidance—like providing a budget instead of an open-ended allowance—making it clear that help is available, but effort and accountability are expected.

Another common mistake is assuming children don’t notice family wealth. “Kids are smart. They listen to everything. They see everything,” said Will. “And, by the way, they're pretty good on the internet too. They often find out more than you think, even if you’re not talking to them. That’s why it’s really important to have the conversation—to give them your perspective so they truly understand what’s happening, rather than hearing it from another source.”

Even with these conversations, parents sometimes worry that older children have already developed habits or attitudes about money that are hard to change. The good news, says Will, is that it’s never too late to course-correct. “We all make mistakes,” said Will. “So, sit down with your children and say, ‘Here’s a decision we made, and I don’t think it’s working the way we want it to. Let’s use this as a reset button to put us on a better path.’”

Adrienne adds that parents shouldn’t hesitate to bring in professionals for support. “Use your advisors. You’ve raised one or two kids; your advisors have seen this with lots of families. They can help you have these conversations—even the reset ones.”

A Lifelong Journey

Raising financially responsible kids isn’t about one conversation or one set of lessons. It’s about consistency, trust, and shared values. It means giving children the freedom to make choices, the confidence to learn from mistakes, and the perspective to understand that money is not an end in itself, but a means to live with purpose.

Families who talk openly about financial decisions, model generosity, and connect money to meaning help their children grow into thoughtful stewards of their own futures. As Adrienne concluded, “Teaching kids about money isn’t a one-time conversation. It’s a lifetime journey rooted in values, communication, and trust.”

In the end, helping kids understand both the “how” and the “why” of financial decision-making prepares them not just to manage money, but to live purposeful, independent, and fulfilling lives.

[1] Disclaimer: The quotes in this blog have been edited for clarification and brevity. Any alterations made do not change the intended meaning of the original statements.