At what age do you discuss money and wealth with your kids? The consensus is divided. While most say as early as five, others believe in using age-appropriate language to teach them the basics. What they all agree on is the goal: Building a sound foundation for financial literacy and independence.
Entrepreneur and philanthropist Warren Buffett, on the other hand, advises taking an unconventional approach in estate planning. According to him, parents should let their kids read their will before signing it.
Although his advice might raise eyebrows, Buffet says too many families are torn apart by infighting over inheritance. Discussing the topic openly with your adult children can prevent future conflict.
No Free Passes
Center your talks around instilling values, setting expectations, and preparing your kids for the future.
The same applies to wealth management. It’s about more than protecting assets. If you haven’t already, get help with wealth management to ensure your assets serve your family’s goals.
To you, true wealth success can look like the freedom to focus on family, purpose, and legacy. Richard P. Slaughter Associates advises consulting a wealth management firm that provides investment management across key areas of your financial life.
Buffett famously advised parents to give children “enough money so they would feel they could do anything, but not so much that they could do nothing.” This wisdom holds today. Financial conversations help kids view wealth as an opportunity to grow, not a free pass.
When to Start the Conversation
Like we mentioned, there’s no one-size-fits-all age, but experts agree: start earlier than you think.
Initiating discussions about inheritance and wealth transfer while your kids’ minds are still pliable helps them prepare emotionally and practically.
Tailor the conversation to each stage of life:
- Young children: Keep it simple. Talk about saving, sharing, and what money can (and can’t) do.
- Teenagers: Introduce budgeting, investing basics, and philanthropy.
- Young adults: Open up about trusts, estate plans, and what wealth means in their lives.
How to Frame the Discussion
Focus on Values, Not Numbers
Wealth without guidance can feel overwhelming. Parents who share the “why” behind their financial decisions help kids anchor their inheritance in meaning.
Normalize Estate Planning
According to Business Insider, many families shy away from estate plan talks because they’re uncomfortable. Silence can leave kids unprepared when the time comes. Framing it as part of responsible family planning, such as insurance or education, removes the stigma.
Balance Transparency and Timing
You don’t need to show spreadsheets at every dinner. The Australian Financial Review says that parents often wonder if disclosing details of their will is wise. Do a Warren Buffett and share enough information to avoid surprises and conflict, but adapt the details to maturity.
Common Pitfalls to Avoid
Giving kids complex details before they’re ready can overwhelm them. Start with concepts, add specifics as they mature.
Keeping everything under wraps may seem protective, but it fuels confusion, resentment, or poor decisions later.
Telling kids that money “doesn’t matter” while living an affluent lifestyle creates contradictions. Your words and actions must align.
Tools That Can Help
Thoughtful resources can make the process easier.
Wealth managers and financial advisors can help structure conversations around trusts, tax planning, and legacy. Firm and investment professionals provide specialized services and comprehensive financial planning for private wealth.
Or, you could consume information at your own leisure. SmartAsset’s list of the best estate planning books is a great place to find practical resources to share with your children.
Set aside time for intentional discussions during regular family meetings, rather than waiting for a crisis.
Create a Culture of Openness
Wealth planning talks are part of an ongoing family culture. Encourage questions, admit when you don’t have all the answers, and let your kids see that money is a tool and not a taboo.
Conversations about inheritance are less about assets and more about relationships. When conversed with openness and care, these talks can bring families closer.
Yes, it’s uncomfortable. Yes, there may be eye rolls, awkward silences, or disagreements. The alternative? Leaving your children unprepared is far harder in the long run.
The worst thing you can do is put it off until it’s too late. Equip your kids with the financial knowledge and intelligence to carry on your legacy with confidence. Enlist an experienced team to guide with asset allocation strategies and other investment products.
No need for stiff boardroom sessions. Keep the tone light and approachable. In the end, you’re not passing down wealth, you’re passing down wisdom.
