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Raising self-reliant children can be challenging, especially for wealthy families. Kids who grow up in households with vast resources may struggle to see the value of personal achievement.
"I went to school with some of those kids at Duke University, and I vowed to myself that if I ever had resources at my disposal, those were not the kind of children I wanted to raise," Melinda Gates said in a New York Times interview, referring to kids whose parents had their names on the side of buildings.
While most families don’t share that level of wealth, all parents can benefit from teaching their children the importance of earning, saving, and managing money wisely.
Provide an allowance to learn good money management
The Gates children, despite their parents’ wealth, had limited financial resources and learned to use them wisely.
"They had an allowance," Melinda Gates explained, adding that their kids had to wishlist desired items, which they might receive on special occasions.
Allowances, used by 79% of parents according to a T. Rowe Price survey, help kids understand the value of money and make smarter financial decisions.
While the Gates children may have learned their money lessons young, not all Americans reach adulthood with financial literacy. If managing a budget feels overwhelming to you, apps like Rocket Money can simplify the process.
Rocket Money tracks and categorizes your expenses, providing a clear view of your cash, credit, and investments in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs and save potentially hundreds annually.
For a small fee, the app can also negotiate lower rates on your monthly bills, making it a valuable tool for keeping your finances on track.
If you want to focus on saving and investing in 2025, but don’t know how you can find the room in your budget, tools like Acorns can make the process effortless.
When you link your credit cards and bank accounts to the app, Acorns will automatically round up each of your purchases to the nearest dollar and invest the spare change in a diversified portfolio. It’s a simple way to turn everyday spending into an opportunity to grow your savings.
Plus, when you sign up now, you’ll receive a $20 bonus investment to get started.
Help them understand their privilege
If your children are lucky enough to enjoy experiences that many cannot afford, it’s important to help them understand that this is a privilege, not everyone has and that being mindful of this matters.
"We said to them from a very early age, you know you really are not allowed to tell other people how we flew on this trip back and forth, otherwise it will separate you from other children," Gates said.
As you work to raise privileged kids with empathy, it’s equally as important to make sure they are financially savvy — especially for a distant future when you aren’t around. It may be worth laying out succession plans with platforms that make it easy and stress-free.
LegalZoom is an innovative online service that streamlines estate planning, offering tools to create wills, living trusts, and prenuptial agreements. You can start building an estate plan for as little as $99 by answering a few straightforward questions.
With customizable templates, step-by-step guidance, and the option to consult licensed attorneys, LegalZoom helps you protect your family’s future without the hefty fees associated with traditional law firms.
By following these tips, you can raise kids with good financial sense so they can build their own success.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
