Kids and Money
When you’ve built (or inherited) significant wealth, the question isn’t just *how to grow it*—it’s *how to pass it on wisely*.
And for many high-net worth families, the real challenge isn’t taxes or trusts.
It’s the kids.
How do we raise children who are thoughtful, responsible, and independent… in a world where money isn’t a constraint?
How do we pass down wealth without passing down entitlement?
These are questions we hear often at PAM. And while there’s no one-size-fits-all answer, there are a few guiding ideas that can help.
Talk About Money—Early and Often
Many affluent families avoid conversations about money. Maybe it feels awkward. Maybe they don’t want to “spoil” the magic of childhood. Maybe they just don’t know where to start.
But here’s the truth:
Kids are learning about money whether we talk about it or not.
They’re watching how we spend, save, and react to stress. They’re learning from our silence as much as our words.
So start age-appropriate conversations early:
What does it mean to earn money?
Why do we give to causes we care about?
What’s the difference between needing something and wanting it?
By demystifying money, you make it less about power—and more about purpose.
Model Values, Not Just Wealth
Your kids may inherit your assets. But more importantly, they’ll inherit your attitudes.
If you treat wealth with gratitude, intention, and a sense of stewardship, chances are they will too.
If, on the other hand, money becomes a source of stress, secrecy, or status—it can create confusion and resentment, even when there’s plenty to go around.
At PAM, we often say:
“Your values are your most valuable inheritance.”
Make them visible. Live them out loud. Let your family see what wealth means, not just what it buys.
Give Them Practice With Real Decisions
One of the best ways to raise financially capable kids is to let them make decisions—with real dollars.
Start with:
Allowances tied to responsibilities
Budgeting for a small trip or project
Matching what they save toward a goal
Including older kids in charitable giving decisions
Later, you can build toward:
Family foundations or donor-advised funds
Opportunities to invest in a family business
Structured conversations about trusts and long-term planning
Learning to manage money isn’t a one-time conversation—it’s a series of experiences.
Define What It Means to Be “Prepared”
We often hear, “I don’t want to ruin their motivation.”
Totally valid. But the solution isn’t hiding the truth—it’s preparing them well.
Being “prepared” doesn’t mean knowing how to manage a hedge fund at 18. It means:
Understanding how money works
Being emotionally grounded
Knowing how to ask good questions
Having a framework for making thoughtful decisions
Prepared kids grow into capable adults—ones who can handle wealth, use it wisely, and grow it with care.
Create a Legacy That’s Bigger Than the Balance Sheet
Wealth isn’t just about assets—it’s about impact.
Consider how you want your family’s story to continue:
What do you hope your kids say about your values?
What kind of legacy do you want to leave in your community?
How can your wealth be a tool for good, not just comfort?
When money is aligned with purpose, it becomes a multiplier—not just of dollars, but of meaning.
Final Thought
Raising grounded kids in a wealthy world isn’t about perfection.
It’s about presence, intention, and conversation.
At PAM, we help high net worth families align their finances with their values—so the next generation can step into responsibility with confidence, clarity, and a sense of purpose.
Want to start a family wealth conversation?
We’re here to guide those talks, help you build age-appropriate financial education strategies, and structure your legacy so it serves generations to come.