This holiday season, prepare to talk finance with loved ones. A new Fidelity survey of 1,900 adults shows family boundaries around money are coming down, with 4 out of 5 saying it’s important to talk to young people about money. Two-thirds of respondents are actively engaging in those conversations.
For many, it is an effort to close the knowledge gap they feel from their upbringing. More than half of Americans (56%) say their parents never discussed money with them, yet the majority (81%) would have benefited from early financial education.
Equipping children with essential life skills, including money concepts, enables them to flourish financially and avoid common pitfalls. Early economic education fosters a sense of responsibility, independence, and confidence that steers them in the right direction.
Advisors share their views on these changing trends and how to optimize financial education for minors.
An Awkward Conversation
Americans are famously passionate about money. American society is overtly consumer-driven compared to many other parts of the world, closely associating asset accumulation with success.
Mainstream media and entertainment frequently depict wealth and luxury, reinforcing the notion that financial achievement is the ultimate measure of personal fulfillment.
There can be a trade-off for this focus on material success. While Americans generally have more money than Europeans, they are often time-poor compared to their Atlantic counterparts, sacrificing leisure and personal time to pursue wealth.
Given its cultural importance, it’s ironic that there is less conversation about money within U.S. households than expected. “Money has traditionally been a taboo subject in many households, often due to cultural and generational norms,” says Tushar Kumar, founder of Twin Peaks Wealth Advisors. “However, it’s encouraging to see this changing as families recognize the long-term benefits of financial literacy and open dialogue.”
Lawrence D. Sprung, founder and wealth advisor at Mitlin Financial, concurs, stressing the need for parents to take the lead lest others fill the vacuum. “We need to have conversations about money while sharing some of the most important concepts with our kids,” he says. “If we are not doing it, who is?”
Advisors speculate on why these issues are changing. “I think what has changed is that we see how not talking about something only makes it worse,” says Matthew Pogirski, founder of Unburdened Financial Planning. “Many who did not have guidance from parents, had to learn through mistakes and failures. I think there is a desire to give their children the education they did not have.”
Am I There Yet?
American adults aren’t just looking to share their money know-how; they are passing down their aspirations to future generations. According to Fidelity, almost three-quarters (70%) of respondents hope the next generation will attain a higher level of wealth than they have today.
Wealth, however, has different meanings to many. Fidelity shows most Americans have a relatively low threshold: 71% say a significant criterion for feeling wealthy is simply the ability not to live paycheck-to-paycheck.
However, expectations vary among high-net-worth (HNW) individuals — those with $1 million or more in savings or assets — as only 54% agree with that simple definition of wealth. Around 65% of HNW individuals equated wealth with being able to travel and take vacations.
Economic disparities may exacerbate such differing attitudes to finance, but they often find their origins in the home. “Parents who can have these conversations with their kids should, and those who are not educated enough need to find a resource they can share with their family to assist,” says Sprung. “Often, we meet with the children of the families we serve to help educate them and have them understand some of the most important concepts.”
Fidelity says that many people may consider money a taboo subject because most accumulate wealth on their own. The study finds that 8 in 10 Americans identify as having “self-made” wealth, with only 5% identifying as inheriting it.
These responses, however, don’t align with reality. Most statistics estimate that around one-quarter to one-third of Americans inherit some assets.
Why is there a denial of the impact of generational transfers? “I think part of it is the desire to be self-made,” says Pogirski. “We believe that we are only something if we made ourselves to be something. This takes us away from having a grateful heart and recognizing how we have been blessed.”
Life’s Biggest Lessons
“Starting early will allows them to take advantage of the power of compounding,” says Sprung. “The difference between beginning to save in your teens vs your forties could be seven figures.”
“Financial education starts at home,” stresses Kumar. “Parents can model good habits by involving their children in budgeting, saving, and investing decisions. Schools incorporating personal finance into the curriculum would also make a significant impact.”
Yet Kumar believes the best money teacher is life itself. “Nothing beats hands-on experience—helping kids practice making decisions and understanding the consequences early on builds lifelong confidence and competence.”
This can set young people up for success. Yet that’s not the end of the money journey. Appreciating what you have and giving back can bring even more profound contentment.
To achieve this, Pogirski says it’s essential to learn generosity and thinking of others. “Helping others reminds you of how much you have been blessed with and gives you more emotional rewards than receiving does,” he adds.
Early financial education can lead children to independence, responsibility, and confidence. Discussing money at home is becoming less taboo, and financial advisors stress communication as important for long-term success.
Teaching kids to manage finances, appreciate what they have, and give back fosters wealth and true fulfillment.
