Raising Financially Independent Children
By Craig Murrin, Managing Partner, BlackPoint Capital Partners · Originally published in Lake Las Vegas: A Consolidated View Q3 2025 · July 2025
Teaching your kids and grandkids about money is one of the best investments you can make. Good money habits early on will help those you love face financial challenges in their future. Here are a few money management tips for you to consider.
1. Teach kids about money early in their lives.
Financial literacy must start at home. It is not taught sufficiently in schools. Teaching kids about money early on helps them see money as a tool to be leveraged, not just something to be spent.
2. When introducing money management to young adults, start simple.
Use a clear jar instead of a piggy bank, so kids can see their money grow. Pay them for extra chores to help them learn that money is earned. Lessons on saving versus spending can set the stage for long-term financial security and stability.
3. Teach the fundamentals of budgeting skills.
Use the “three-jar” method – one for saving, one for spending, and one for giving – as a great way to start. As kids get older, introduce budgeting apps to track income and expenses. For those in their 30s and 40s, the focus should be on budgeting for essentials like housing, retirement, maintenance, and unexpected emergencies.
4. Teach children the difference between “needs” and “wants.”
It’s essential to teach kids the difference between budgeting for food and housing versus toys and dining out. Use real-life examples during shopping. Ask them, “Do we need this, or do we just want it?”
5. Encourage the habit of long-term saving.
Consistent saving is crucial. Offer to match a portion of your child’s savings – like a 401(k) match for kids. For older kids, automate saving through direct deposits. It makes saving easy and well, automatic!
6. Give your kids an allowance, and teach them how to manage it.
An allowance helps kids learn that money is earned, not given. Encourage them to divide their allowance into three buckets: saving, spending, and giving. For adult kids, allocate income between expenses, savings, and fun money.
7. Teach your kids the value of a dollar.
Help them understand how to earn, save, and spend wisely. Use real-life examples – like comparing prices at the store or explaining how long it takes to save for something they want. For older kids, discuss paychecks, taxes, and living expenses. The key is that they appreciate and understand the fragility and value of their money.
8. Share your own “lessons learned.”
With older kids, share your own money mistakes and lessons learned – it’s more relatable than a lecture. Teach them to avoid high-interest debt, impulse spending, and lifestyle inflation. Have them focus on maximizing 401(k) matches and avoiding underfunded retirement accounts.
9. Talk to your kids early and often about money.
Whether at dinner or during errands, make it a regular topic. For older kids, suggest an annual financial check-up to review budgets, savings, and investments.
In closing, teaching kids and grandkids good money habits is about giving them the confidence to become financially self-reliant. The earlier they start, the better. And, if you need help turning these lessons into action, you know where to find me.
Some of the content of this communication was provided by third parties of BlackPoint Capital Partners. We have not verified the information contained herein, but we believe the content is reliable. None of this content should be construed as legal, accounting or tax advice. Tax laws are complex and often have highly-individualized requirements, you should seek the advice of a competent tax professional if you have specific tax questions.
