Generational Money Wisdom: Passing Down Financial Tips to Kids and Grandkids

Blog | February 23rd, 2024

In the tapestry of life, all threads weave into lessons including the ones we learn about money. Even as the wrinkles on our faces accumulate with age and years, so do the nuggets of financial wisdom we learn through experiences, successes, and even a few misguided steps. As age and knowledge merge together, it’s our responsibility as adults to share these money lessons with the next generations…our children and grandchildren. As the old saying goes, an ounce of prevention is worth a pound of cure, even when it comes to money and the mistakes that go with it! Here, we share wisdom gained to help those coming behind us to head down avenues of success!

The Value of a Dollar

One of the earliest lessons handed down through generations is the value of a dollar, which boils down to how much effort goes into earning one. Whether it was the joy of that first allowance or getting paid for doing odd jobs, we learned the sweat and effort behind each hard-earned cent. Today, as we share these stories with our kids and grandkids, it’s not just about teaching them the importance of earning, but instilling a sense of respect for money… which includes earning it, saving it, and spending it wisely.

The Power of Saving

Learning to save is the foundation of financial stability. From piggy banks to savings accounts, we’ve witnessed the power of setting money aside for the future. Teaching kids and grandkids the habit of saving, whether for short-term goals like a toy or long-term such as a home, is like planting seeds that will grow into a flourishing garden of healthy finances.

The Balance of Budgeting

Budgeting is a lesson that has been handed down for generations. Our parents showed us how to balance wants and needs and now it’s our turn to pass on the concept of this financial see-saw. Introducing the importance of a budget to kids and grandkids is providing them with a roadmap for managing their money. Shining a light on the vast difference in using money for essentials to occasional splurges creates understanding which turns into a skill that will serve for a lifetime.

The Art of Investing

Investing might seem like an adult’s game, but introducing the concept early lays the groundwork for financial freedom in the future. While our parents might not have had the technology we have today, the idea remains the same. Planting seeds for the future can guide anyone into the world of investing as we add to it our many stories and insights of understanding patience, risks, and the incredible power of earning interest.

Credit vs Debt

Credit cards are likely a necessity if you want your credit scores to rise. But they can have you sinking in a hurry if you’re not careful. Loans can also be financial quicksand if we don’t tread wisely. Past lessons, whether triumphs or losses, become invaluable tools for teaching the next generation the importance of responsibility in both areas. Sharing our experiences of financial missteps can serve as caution while emphasizing the importance of making informed decisions when it comes to borrowing at any level.

Embracing Simplicity

The beauty of a simple life often escapes those caught in the whirlwind of wants. Our parents and grandparents taught many of us the art of being thrifty, a lesson that continues to be an important one. Passing down this wisdom to the younger generations is not about deprivation but about embracing a life where the joy of experiences and relationships often outweighs that of material possessions. Things don’t last where these other choices do…and they don’t deplete your bank account or dwindle your savings.

Emergency Funds

Life is unpredictable, and financial storms can hit when least expected. Our experiences with rainy days have taught us the importance of having emergency funds. Instilling this lesson in our children and grandchildren is like giving them a financial umbrella. Preparing for the unexpected provides a sense of security and the assurance of weathering life’s storms without being suddenly washed away.

Generosity Leaves a Legacy

The concept of giving back, whether through charitable acts or supporting loved ones, is a legacy that is remembered for generations. From watching our parents share what they had, even when resources were limited, to incorporating the well-being of others into our own lives…passing on the importance of generosity is a lesson that speaks to and from the heart. As it has been very wisely stated, we reap what we sow which makes giving a very valuable investment.

Related: What Could Happen to Interest Rates in 2024?