04 Dec Don’t Be Afraid to Talk About Finances with Your Children

It’s important to start talking about money when your kids are still young. The more they learn about how money works, the better they’ll be at handling it when they’re adults. 

These conversations can be difficult, but shielding your children from financial matters will not do them any favors in the future. Unless they learn how to handle money wisely when they’re young, they could end up squandering everything you’ve worked so hard to save. 

In fact, teaching your kids how to handle money is the best way to build generational wealth.

“It’s harder now to be doing well financially than it used to be, which means we have to do a little bit better as parents,” says Ashley LeBaron-Black, an assistant professor at BYU. That means being honest with your kids about your finances and teaching them how to make smart decisions.

Talk about budgeting, spending, investing, and saving. 

Involve your kids in the conversations you have about money, and make sure to give them some hands-on experience, too. For instance, you could let them help with the grocery budget and shopping, or let them play a role in planning a family vacation and saving up for it.

As they get older, you might want to get your kids involved in the family business, or even let them start their own venture. Or perhaps you might let them sit in on a meeting with your broker or financial advisor. The more financial literacy they can gain as preteens and teenagers, the better. 

Tell them about your estate plan and their inheritance.

When you feel like they’re ready, talk to your kids about your estate plan. Most kids wonder at some point what would happen to them if they were suddenly orphaned, and it can be a relief to find out that you already have a plan in place.

These conversations can be difficult, so it’s important to reassure your children that they’ll always have a safe and loving home. If they’re still minors, tell them about the guardian you’ve selected, just in case anything ever happens to you. 

You might also want to tell them that you’ve set aside an inheritance to set them up for success in the future. If their inheritance has any conditions, explain the terms. If you set up a living trust, let them know who will be managing the trust after you pass away. 

If your children are over 18, you can name them as your successor trustee or the executor of your estate. But before you assign these roles, make sure your children agree to take on the responsibility. They might be more comfortable leaving these duties up to an impartial third party, like a lawyer or a financial firm.

Protect Your Children with Estate Planning Services from Phelps LaClair

Every parent needs an estate plan, no matter their age or income. Whether you’re a new parent ready to take the first steps, or a grandparent planning a legacy, we can help you meet your goals. Estate planning has been our area of expertise for generations, and we can help you make smart legal decisions that will protect your children in the future. 

To schedule a free consultation, contact our offices in Scottsdale, Chandler, Tucson, or Mesa today.

Photo by Maria Lin Kim on Unsplash used with permission under the creative commons license for commercial use 11/17/25.