Raising a financially responsible child is one of the most important things you can do as a parent. It matters just as much in households with generational wealth as it does in families working hard to cover the basics. Because these lessons are rarely taught in schools—and aren’t always obvious to kids growing up—it falls on parents to start early and reinforce the message over the years. The good news is that it’s never too late to begin.
Connecting money with hard work builds lifelong skills like budgeting and saving. These lessons can start as soon as children are old enough to do household chores. Tasks such as feeding the dog, emptying wastebaskets, or unloading the dishwasher are simple ways to link responsibility with reward. You might even have your child sign a contract that ties chores to a weekly “paycheck.” Encourage them to save this money so that when they want something, they’ll need to purchase it themselves. If they don’t have enough, they’ll learn to wait—an important lesson in patience. Often, the item they saved for gets used briefly and then forgotten, which reinforces the value of saving over spending on short-lived desires. Saving also helps prevent future financial stress.
As children grow older, parents can encourage them to take on jobs outside the home to pay for teenage expenses, such as outings with friends. This fosters independence and teaches them not to rely on others for their needs. It’s also a great time to introduce investing—showing how money can grow over time, becoming far more than the initial amount. Opening and contributing to a Roth IRA early can be especially powerful: children learn not only about compound growth but also about the tax advantages of paying taxes at a lower rate now rather than at a higher rate later.
Another way to reinforce these lessons is by creating a family mission statement that expresses your shared values. Ask questions like: What is our purpose? What do we stand for? Who are we as a family? Helping kids understand what their money is for—and how it can support your family’s values—is a lesson that lasts a lifetime. It’s especially important in families with significant assets so that there is a defined purpose for the wealth.
By raising a financially responsible child, you empower them with the tools to succeed long-term. Teaching them to set goals, account for costs, and understand trade-offs builds strong decision-making skills that prepare them for life’s biggest milestones—from affording college to buying a home to planning for retirement. That foundation is one of the greatest gifts you can give your child.
Recommended reading and resources:
The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money by Ron Lieber.
The Opposite of Spoiled is a practical guide for parents on how, when, and why to talk to children about money at any age, covering topics from allowances and chores to charity and financial responsibility. The book teaches that educating children about money can help them develop qualities like thrift, generosity, patience, and gratitude rather than becoming materialistic or spoiled.
Besides Elevation’s own Insights blog, we are big fans of fellow financial expert Dave Ramsey as well as the content and lessons on Khan Academy.