6 Ways to Set Your Kids Up for Financial Success

It’s back-to-school time! This time of year, it seems that everyone—from parents to marketers—is focusing on kids. I figured I would follow the crowd and do the same. Today, I’m going to share six things you can do to set your kids up for financial success, and the best part is that most won’t cost you a dime.

1. Model Biblical Stewardship

Do you believe that God owns everything and you simply manage your finances on his behalf? Do you trust God as your provider and look to him for your security? Can your kids tell by the way that you act and talk? You can have accurate theology and know everything the Bible says about stewardship, but if your kids don’t see you live it out, it means nothing. The common saying, “more is caught than taught” is true. Make sure that your beliefs are reflected in your actions, or you will not pass them down to your kids.

2. Develop a Healthy Relationship with Money

Your relationship with money is not something that is commonly discussed in the church. Everyone talks about how you handle money, but how do you relate to it? The truth is, how you relate to money can have much bigger spiritual implications than what you do with it.

No offense to parents (I am one!), but a lot of the issues we struggle with as adults are founded in childhood. Think about how finances were regarded in your family of origin. Were they discussed openly, or was it taboo? Were finances stressful or scarce? Were they emphasized or ignored? How has that affected how you view money? Even if our finances look good from the outside, we can still have an unhealthy relationship with money. A scarcity mindset, a constant striving for more, the belief that money is evil, an attitude that finances don’t matter or shouldn’t be discussed, etc. All of those things represent an unhealthy relationship with money that can rob us of peace, divide a marriage, and interfere with our relationship with God.

Think of any unhealthy beliefs you’ve developed regarding money, and ask God to help you overcome them so that you don’t pass them on to your own children.

3. Impart Work Ethic

There is a very good chance that your children’s earning ability will be directly tied to their work ethic. Help them develop a good work ethic by having them work and teaching them about why we work and the benefits of work. Whether they’re a star employee or a successful entrepreneur, their work ethic will likely play a big part in their financial success.

4. Teach Financial Literacy

Your kids can be good workers who earn a lot of money, but if they don’t know what to do with it, they will be in trouble. A lot of parents get tripped up here because they are not confident in their own financial literacy. If that’s your case, this is a great opportunity for you to learn alongside your kids. There is a lot of material available designed to help your kids learn to manage money, from Ramsey Solutions resources to Khan Academy’s free online course to the Build Your Stax game available online.

5. Help with Education Costs

College education is the leading cause of debt among young people and is having devastating impacts on an entire generation. You can help your kids avoid student debt by saving for their education. A 529 account is a great place for that. Even if you can’t afford to give them any money, helping your kids find scholarships, participate in AP classes, or take dual enrollment courses can cut the cost of college significantly.

6. Save for Your Retirement

As a financial planner, it is not uncommon for parents to be the greatest threat to a client’s finances. If there comes a time when you cannot work any longer and you don’t have money set aside to live on, what will you do? Most people turn to family for help, usually their kids. Just like the flight attendants remind us to put on our own masks first before helping others, it’s important to prepare for your own future if you ever want to be able to help anyone else. You can take out loans for college, but there are no loans available for retirement. Preparing for your own retirement will be a huge blessing to your children and may even turn into the inheritance recommended in Proverbs 13:22.

Amy Artiga is a Certified Financial Planner (CFP), a Certified Kingdom Advisor™, and author of the clergy personal finance blog PastorsWallet.com. Send questions for Amy to benefits@nazarene.org.