We have five middle-aged sons and 11 grandchildren, ages 13-20. Our job as parents was to raise kind, loving, hardworking and well-educated children.

Our efforts were impacted by grandparents, other family members, friends, teachers and the environment they lived in.

But we as parents were the primary guides on our kids’ journey to adulthood, responsible for passing on values and knowledge.

Now, we find ourselves trying to help our adult children guide the grandchildren into adulthood.

For those of us who have been through this, you know what a humbling experience raising children can be with no “operators manual” provided at birth. Dealing with money issues is not easy.

It appears society has had mixed results when it comes to passing along financial values and knowledge, despite our best efforts.

The “Greatest Generation,” born roughly between 1910 and 1927, faced significant financial challenges during their early lives, including the Great Depression and World War II.

Their financial security, particularly in their later years, was heavily influenced by the social safety nets implemented during and after these periods.

They were known for their frugality and saving habits, accumulating wealth through consistent investments, and often benefiting from the time value of money.

Baby Boomers are considered the wealthiest generation in U.S. history, with an average net worth of $1.2 million per person. This wealth is primarily driven by stock and real estate assets.

Gen X faces significant financial challenges, despite having the highest median income among generations. Many are struggling with debt, including student loans, credit card debt and mortgages. A recent poll found that 58% of Gen Xers say money is their primary source of stress.

According to the New York Post, Gen Z now represents 27% of the workforce, but a WalletHub survey showed that more than one-quarter of Gen Z admit to lacking confidence in their financial knowledge, making them the least financially confident generation.

Why is this happening? Bottom line is that financial literacy isn’t widely taught in schools, and many families just don’t talk about money.

Baby Boomers have been around the block, and we sure have a lot to share with younger generations.

If you’ve been financially successful, you can share what’s worked for you. If not so much, why not share hard-earned lessons so your children and grandchildren don’t make the same mistakes.

Either way, you have a lot to share; your personal stories can be powerful.

And here are some great tips from a Feb. 19 Schwab Financial Planning article (Note: I’ve added my own comments in italics.):

When They’re Little

Introduce the Value of Money

The first thing to instill into young people is the value of money. Even small amounts of money can give them some freedom, but money also brings a sense of responsibility — they have to live with how they spend their money.

An allowance is a good first step, especially if you tie part of it to chores that could help develop a strong work ethic.

Once they’ve earned a bit of money, they can begin practicing a lifelong skill: how to spend money wisely.

You may find that kids make different choices with their own hard-earned money than they would with someone else’s.

(Note: I always felt the kids should have some “skin in the game” with important purchases — whether that was a new bicycle, a first car or their college education.)

Emphasize Saving

At some point, your children are going to want things that exceed their allowance. Encourage them to set aside part of their allowance for savings, which also teaches them the concept of delayed gratification.

Nudge your kids to develop a routine of setting aside a small portion — say, 10% — of every dollar they receive.

This will help them understand the value of thinking both short- and long-term about their spending and saving.

(Note: Think how much of a difference this simple concept could make over someone’s lifetime.)

Introduce Them to Investing

As your kids get a little older — especially as they get into their preteen years — you can consider opening a custodial brokerage account.

Along with gaining a sense of ownership, your child can learn the importance of researching and managing their assets.

Keep in mind there may be unique tax considerations for custodial accounts, so it’s generally best to work with an adviser to potentially help ensure they would be appropriate for your situation.

Let them choose a few stocks to invest in or help them purchase fractional shares. Then, set up regular meetings to review their performance.

You might be surprised by how engaged children can be when it comes to investing in a company they know and like. Learn more about custodial accounts and fractional shares.

(Note: Starting investment accounts early gave the kids a chance to see firsthand how stocks go up and down, a good lesson about risk.)

When They’re Teenagers

Encourage a Summer Job

We know from our research that young people who have jobs are more likely to be better savers in the long run.

So, make sure your child is saving a portion of every paycheck, and maybe even require them to help out with other expenses, as well.

It’s perfectly reasonable to expect children to pay for gasoline in a car they drive or for trips to the movies with friends.

(Note: Our kids all worked in high school and college — refereeing, construction gophers, even selling kitchen knives. Best lessons ever!)

Introduce Them to Credit

As teenagers become more independent and start driving themselves around, enrolling your child as an authorized user on one of your credit cards can be helpful.

From a practical perspective, having a credit card to deal with emergencies like flat tires is always a smart idea.

More to the point, your teens can learn to spend within their means — assuming you require them to pay back every dollar they charge.

This is also a good opportunity to discuss the importance of being responsible with credit. When you take responsibility to pay back borrowed money, lenders can trust you more when you need to make a big purchase in the future.

It’s equally important to explain the basics, such as how credit cards differ from debit cards.

And it’s essential to warn kids about the dangers of high-interest debt and revolving credit. The more they know about debt, the more likely they are to manage it responsibly.

(Note: Poor use of credit cards is the downfall of many young people, so learning early is key.)

Consider a Roth IRA

Once your children have earned income, they can start contributing to an individual retirement account (IRA). We suggest a Roth IRA for most young savers.

Roth IRAs are funded with after-tax dollars, but withdrawals in retirement can be entirely tax-free.

By funding these accounts early — when their income, and thus their tax rate, is still very low — kids could benefit from decades of potential compound growth and tax-free income in retirement.

(Note: Children must have some earned income to qualify for a Roth IRA.)

When They’re Young Adults

Help Them Set a Budget

Once your children accept their first jobs after college, help them draw up a spending plan based on their salaries and estimated expenses.

When you’ve never lived on your own, it’s easy to underestimate common expenses, such as groceries and utilities.

This is also a great time to learn the difference between fixed expenses (things you have to pay for each month) and discretionary expenses (things that are fun but are not necessary).

There is always a new video game or a new pair of shoes to buy, but if spending on those things is going to make it impossible to pay rent or buy gas, they might find themselves short at the end of the month.

It’s also a good idea to review their employer benefits with them to ensure they’re taking full advantage of all available options, especially any matching contributions to employer-sponsored retirement accounts, such as 401(k)s.

It’s especially important for them to understand the value of those matching contributions.

(Note: Teach children to save first, spend what’s left — not the reverse. Once they start, it’s easy to keep going.)

Encourage Them to Stay Invested

Help your children understand that time is their greatest ally when it comes to investing. The old saying “Time in the market is better than timing the market” can’t be said enough to kids.

As for the investments themselves, there are literally thousands of low-cost index funds from which to choose, which can be overwhelming to a novice.

When in doubt, choosing a product that allocates and invests their money for them might be the best approach.

One such option is a target-date fund, whose asset allocation mix becomes more conservative as the target date approaches.

Another option would be to consider a robo adviser that builds, monitors and rebalances a diversified portfolio of exchange-traded funds on an investor’s behalf. Learn more about managing a portfolio.

(Note: the “KISS formula” can be smart, like making regular equal monthly contributions into three low-cost index funds — a U.S. stock fund, a non-U.S. stock fund and a bond fund. Rebalance once a year and watch the portfolio grow.)

Let Them Know They’re Not Alone

You want your kids to be fully independent adults, but you might need to step in to help them from veering off course from time to time. After all, making poor financial decisions can be an expensive learning experience.

And if they have a question you can’t answer, encourage them to reach out to trusted sources for financial help.

You want them to get in the habit of asking for help if they need it, and not just from you. Even experienced professionals get help on tricky topics.

But it’s also critical for young adults to learn to distinguish real, trusted experts from media influencers who may not have their best interest in mind.

(Note: Just because it’s on TV or the internet doesn’t make it true. Encourage them to read advice from trusted resources and investing legends like Warren Buffett.)

It All Starts at Home

State governments are taking steps to support financial literacy in schools. As of 2024, 35 states required students to take a course in personal finance to graduate high school.

But there’s still no substitute for leading by example. Showing your kids how you achieve your goals through budgeting, saving and investing will potentially help give them confidence that they can do the same.

That last tip may just be the most important: Showing, not telling, your kids good financial behavior.

Kids are watching you from the time they’re babies. If you live within your means, save regularly, plan thoughtfully, they will know it.

The teaching is much easier when you live your talk, and it’s what they see you actually do that are the lessons that stick.

Each of these small steps can make a huge difference over the lifetimes of your children and grandchildren, so start now.