It’s easy to assume wealthy families simply hand over money—but that’s rarely the full story. The real advantage often isn’t in the dollars—it’s in the sense. Behind closed doors, many affluent parents are teaching their kids something far more valuable than how to spend: they’re teaching them how to think about money.
They’re having casual dinner-table conversations about investing, real estate, and cash flow. Their kids know what compound interest is by the time they’re 14. They understand the difference between an asset and a liability. And by the time they head to college, they’ve already practiced making financial decisions on their own.
But here’s the good news: you don’t need to be rich to pass this mindset on.
Parents: Start by simply talking about money more often—and more openly. Share how you budget as a family, what you wish you’d done differently, or how you chose your mortgage. Normalize conversations around spending, saving, and investing. Let your teen hear you say, “We’re cutting back this month to meet a savings goal.” That’s not weakness—that’s wisdom.
Students: Don’t be afraid to ask questions. You might be surprised what your parents know—and what they wish they’d learned sooner. Start with your own earnings. Did you work a summer job? Babysit? Mow lawns? Great. Don’t just spend it—split it. Try this formula: 20% to spend, 20% to save, 60% to invest. The amounts don’t have to be huge—it’s the habit that matters.
Practical ways to build that mindset together:
- Open a custodial investment account and learn about index funds.
- Read a book or listen to a podcast together about building wealth.
- Encourage your teen to track their expenses for a month and reflect on where their money is going.
- Discuss long-term goals: financial freedom, not just short-term spending.
Money is a language—and the earlier it’s spoken in your home, the more fluent your student becomes. The secret of wealthy families isn’t money—it’s mindset. And with intentional conversations and small actions, you can give your child that same advantage before they even step foot on campus.
Because what good is a degree… if you can’t manage your money?
