Dad and son playing chess

When life changes -

Raising financially fit kids

Many studies have found that teenagers leave school unprepared for the financial demands of adulthood. Thankfully, there are plenty of ways parents can help their children understand their finances.

Practical ways to teach good money habits


Start saving

We suggest giving children four pots to show the different purposes for cash:

Spend – this pot can be used to spend on small treats

Save – this pot is designed to encourage longer-term saving and teach the value of interest, as well as delayed gratification

Donate – this pot helps you teach children about helping others

Invest – this pot is designed to introduce children to investing



If you have a savings pot, you might want to negotiate an interest rate with your child. Maybe they are saving for a bike, or another big purchase. Once a week/month you can review their savings pot and add “interest” on top, showing them that the more they put in the more they get out.



Choose something your child enjoys, for example coffees, clothes, cinema outings, trainers, etc. Look at the companies related to your child’s passion and build a pretend portfolio. Take a set amount of money and “invest” in some related companies. Ideally you could have a balance of dividend-paying and growth stocks. Review your investment performance and decide if you should buy, sell, or hold.


Support the entrepreneur in them

If your child has a business idea, offer them some seed money and help them invest it in their business. Speculate to accumulate, but they need to do the work to bring in the profit (and pay back their shareholders).


Hopefully some of these tips will help your children open up and talk about money and finances however old they are. As children grow, they are exposed to advertising and social pressures. Talking about these topics from an early age make them far less daunting.



Further Reading


Saving for grandchildren

Becoming a grandparent is undoubtedly one of life’s great moments.

Grandma-deserves-the best-surprises

Gifts and inheritance tax

Gifting can form a great part of your overall wealth planning strategy. By having the right plan in place and using the allowances and tax reliefs available, it is one way to maximise the inheritance you leave for your loved ones.

Becoming a client

Take control of your finances today by getting in touch through our contact page. Alternatively, you can call us on the number below and one of our team will be more than happy to talk about your future.

+44 (0)20 7012 2500


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Related services

Wealth Planning

Author -

Paul Clifton

Paul Clifton, FPFS

Chartered Financial Planner, Director – Wealth Planning

Paul is a trusted Wealth Planner, who has built a strong reputation for helping clients identify and achieve their life goals, while maintaining the highest standards of personal service. In addition to helping clients in the West of England and South Wales, he is responsible for developing and managing the regional Wealth Planning team at Arbuthnot Latham.

The aim is to deliver professionalism, experience and honesty. Our bespoke solutions cover wealth/tax structuring, estate planning, retirement planning and financial protection. In addition, we work seamlessly with our colleagues to provide investment management, private and commercial banking services.

Paul has over 20 years of industry experience advising individual and corporate clients. He joined Arbuthnot Latham in July 2020 having previously worked for Hargreaves Lansdown and Chase de Vere. Paul is a Fellow of the Personal Finance Society and a Chartered Financial Planner.


This communication should be considered a marketing communication. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research. It is for information purposes only and does not constitute advice, a solicitation, recommendation or an offer to buy or sell any security or other investment or banking product or service. You should seek professional advice before making any investment decision. The value of investments, and the income from them can fall as well as rise, and may be affected by exchange rate fluctuations. Investors could get back less than they invest. Past performance is not a reliable indicator of future results. The tax treatment of investments depends upon individual circumstances and may be subject to change.

The contents of this communication are based on opinions or conditions as at the date of writing and may change without notice. To the extent permitted by law or regulation, no warranty of accuracy or completeness of this information is given and no liability is accepted for its use or reliance on it.