How to instil financial wisdom in your children for future generations

Money Values Matter Creating a lasting financial legacy isn’t just about leaving money to your children—it’s about teaching them how to manage it responsibly and understand its purpose. Henri Le Grange, Certified Financial Planner® at Old Mutual Personal Finance, warns that accumulating assets is only half the battle in building generational wealth. 

“The real opportunity is helping those that will one day be left behind recognise and value the opportunities made possible by the hard work and sacrifices of previous generations,” he says. Without proper guidance, money passed to successors is often lost. “I’ve seen families squander inheritances on luxuries instead of investing, and siblings fall out because one received a million rand less than the other. I’ve seen poor decisions erode wealth in just one generation.” Le Grange says the secret to building lasting family wealth is creating an environment where everyone shares the same values about money. 

“It’s not just about how much you have, but about teaching your family to see money as a tool for creating opportunities and security—and raising good stewards to manage it responsibly,” he explains. He believes it’s never too early to start teaching kids about money. “Even children as young as four can benefit from small lessons that plant the seeds for responsible financial habits," he says. To create alignment in the family and set clear expectations, Le Grange encourages parents to work with a financial adviser and involve their children in the process.  “While some parents hesitate to share their financial position, fearing it may create entitlement or discomfort, this step is crucial for building transparency and ownership,” he explains. 

“I was sixteen years old when my dad included me in meetings with his financial adviser. It made me feel like part of the family’s financial journey and taught me the importance of planning early.” Now, as a parent himself, Le Grange is committed to setting the same role model and instilling an appreciation for the value of money within his family. Le Grange provides the following practical tips for parents who want to pass on financial wisdom alongside financial well-being.  

1.                  Create a financial plan that includes a Will: a comprehensive financial plan ensures your family’s future is secure and aligned with your goals. Including a will in your plan is critical to ensure your assets are distributed according to your wishes, avoiding disputes and legal challenges. Regularly updating both of your plans will keep them aligned with your family’s changing needs and circumstances. 

2.                  Teach financial independence through hands-on experience: encourage children to manage small sums of money from a young age, making decisions about spending, saving, and giving. For practical advice, consider books like Make Your Kid a Money Genius (Even If You’re Not) by Beth Kobliner, which offers age-appropriate strategies for teaching financial responsibility. 

3.                  Lead by Example—Do what you practice: children learn by observing their parents, so it’s essential to model the financial habits you want them to adopt. If you budget, save and invest wisely, your actions will instil those values in your children better than any lecture. 

PERSONAL FINANCE