Wealth Managers Reveal the 3 Money Skills That Are Most Important To Teach Your Kids
Written by
Laura Bogart
Edited by
Kristen Mae
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As a parent, you want your children to grow into self-sufficient, confident adults — especially when it comes to managing money. Ideally, they’d start learning how to earn, save and grow wealth long before stepping into the adult world. But unlike riding a bike, teaching kids about money isn’t always straightforward.
That’s why GOBankingRates spoke with several wealth managers. These experts shared the money skills they believe matter most for kids to learn early. And because time is limited, we narrowed their advice down to the top three.
If you’re wondering how to start teaching these lessons at home, don’t worry — we’ve got you covered.
Having an Income Stream Is Pivotal
Right now, your kids probably understand that adults need jobs to pay the bills. What they may not fully grasp, however, is the idea of generating income — or that money can be earned in more than one way.
Josh Dunn, a Certified Financial Planner and wealth advisor at Legacy Wealth Management, says parents should introduce kids to the importance of earning money as early as possible.
Dunn started by giving his own children an allowance.
“If my son does his chores, he earns $10 a week from his mother and me,” he said. “The idea that he could generate income through his own efforts led to a revelation. He asked, ‘If I do chores for Grandma and Grandpa, do you think they’ll give me an allowance too?'”
Once his son understood that effort could translate into income, Dunn said he was “off to the races, trying to find everything he could do to earn a dollar.”
He spent weeks washing cars, raking leaves and sweeping garages on top of his regular chores — earning nearly $400 in the process.
Differentiating Wants and Needs Is Essential
Iris Wang, founder and CEO of World of Money, prioritizes teaching her kids the difference between wants and needs.
She wants them to develop the emotional maturity required to balance spending on priorities versus luxuries. And, she says, this lesson goes beyond money — it’s about understanding what matters most.
For example, if her son wants a deluxe box of basketball cards, he may have to skip ice cream for two weeks.
“I find real-life consequences far more powerful than my words alone,” she said. “It’s extremely valuable for kids to make decisions themselves and live with the outcomes. Planning for things with limited money teaches delayed gratification, self-discipline, and a sense of control — they see firsthand that the future is theirs to shape with intentional choices.”
Wang also enjoys watching her children’s confidence grow as they successfully plan for weekly earnings or save for a larger purchase. She calls it “the seed for a healthy relationship with money, which will impact almost every aspect of their lives.”
Smart Investing Builds Long-Term Wealth
For Derrick Schuler, a Certified Financial Planner at Schuler Wealth Planning, teaching kids the basics of investing helps build on the skills of earning and saving money.
He acknowledges that most kids — and many adults — lack the time or focus for a full investment strategy. Still, he says childhood is the ideal time to let them explore investing concepts in a low-risk way.
“As a kid, goals may change from week to week,” Schuler said. “Even just investing a little in a high-yield savings account, stock, mutual fund or ETF teaches them how these options work and how they differ.”
Owning a stock or mutual fund also introduces the concept of growth over time. And for parents who aren’t ready to put real money in the market, Schuler says there are alternatives.
“There are stock simulation games online where you can build a fake portfolio and track it with the real stock market,” he said. “It’s a fun way to help kids understand investing.”
Teaching Money Skills Can Be Fun
Money conversations don’t have to feel awkward or intimidating. Today’s parents can use digital tools and apps to make learning about money more interactive and practical.
For example, tools such as Cash App’s “Families” feature allow teens to manage money — including setting savings goals, receiving direct deposits, and using a prepaid Visa card — while parents maintain visibility and oversight.
Using tools like these can help reinforce smart money habits as a shared family value — one kids can carry into adulthood and, perhaps, impress their own wealth managers one day.
The Bottom Line
Teaching kids about money isn’t always easy, but it’s essential. Start with these three lessons from wealth managers and explore digital tools to make learning about money engaging — and maybe even fun.
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