Money can feel mysterious—even for adults. But the earlier children learn to earn, save, and invest, the more comfortable they become making smart decisions later in life. At Totemic Wealth & Planning, we see firsthand how a few intentional lessons can create ripples of generational wealth. Below are six practical, age-appropriate ideas you can start using today.

1. Start with an Allowance

Tie allowance to chores so kids grasp the connection between effort and earnings. Even a few dollars a week lets them practice the three basics—save, spend, and share. As they grow, increase the amount (and the responsibility) to keep the lesson relevant.

2. Introduce Saving & Compounding

Begin with a simple piggy bank, then level up:

• Savings Account (Joint or Custodial). Federally insured and perfect for tracking deposits online.
• Certificates of Deposit (CDs). Lock up a set amount for a set time and earn interest—great for demonstrating delayed gratification.

For older kids, show them a compounding calculator and watch their eyes light up when they see how “money making money” can snowball over the years.

3. Teach Budgeting—Needs vs. Wants

The next time your child wants both a new toy and a treat, help them categorize which is a need and which is a want. When they receive birthday or graduation money, talk about long-term goals like college:

• 529 Plan Contributions. While kids don’t manage these accounts directly, explaining how tax-advantaged college savings work plants a powerful seed for future planning.

4. Have Family Financial Conversations

You don’t need to reveal every bank statement to raise financially savvy children. Instead, invite them into everyday decisions:

• Comparing grocery prices
• Setting a vacation budget
• Discussing how long you’ll save for a new car or family adventure

A casual, honest tone demystifies money and shows that planning is a normal part of life.

5. Explain Investing

For teens, move beyond savings into growth:

• Stocks, Bonds & Mutual Funds. Explain the basics—and the risk/reward trade-off.
• Custodial Accounts (UGMA/UTMA). An adult manages the assets until the child reaches legal age, giving them a front-row seat to real-world investing.

A small portfolio—even a single ETF—can spark curiosity and a lifetime habit of investing early and often.

6. Get Creative with Earned Income

Does your child help out in a family business or earn income from a part-time job?

• Roth IRA for Kids. Contributions go in after tax, compound for decades, and come out tax-free in retirement. Few tools illustrate the value of long-term, tax-advantaged growth better than this one.

The Bottom Line

These steps don’t just hand children money—they hand them confidence. By making financial education a family affair, you lay a foundation for smarter choices and stronger legacies.

If you’d like to explore any of these strategies—or discover others tailored to your family’s goals—let’s talk. Click “Schedule an Intro Meeting” on our website or email us at hello@totemicwp.com. We’re here to help you (and the next generation) build wealth that stands the test of time.