“Kids these days,” you might hear someone say—a clause usually accompanied by some less-than-charitable conclusion. But compared to past generations, kids these days are facing a unique amalgam of financial challenges—and not always in the ways you’d expect.

In a world where budgeting apps, mobile banking and online investment platforms seem to make financial health more accessible than ever, plenty of today’s youngest are struggling to feel financially empowered. In fact, one recent study finds that more than 75% of teens lack confidence in their personal finance knowledge—and that nearly half don’t know the difference between a credit and debit card.

And since parents are enjoying a life with more conveniences than past generations, many are less demonstrative when it comes to teaching their kids financial basics. If anything, our world of all-digital-everything has created a false sense of security. The result: 90% of teens say they’re interested in investing, but more than half of them don’t know what a 401(k) is—and aren’t moving forward on their investment journey because they don’t feel confident enough to begin.

In short, it’s not that kids these days don’t care about finances. They just need more guidance. Fortunately, there are plenty of accessible ways to help your kids create the foundation for a strong financial future. Here are three of our favorites.

Set a Savings Goal—and Help Them Get There

Long gone are the days of dropping coins into a child’s piggy bank—both a tender ritual and a simple way to illustrate the principle (and process) of saving. Even with an abundance of budgeting apps and student savings accounts, many families have yet to find a modern, impactful replacement for that timeless and tangible approach.

Meanwhile, today’s youngest generations face mounting financial pressures—from surging inflation and soaring interest rates to crippling student debt, unaffordable housing, and a volatile job market, just to name a few. Obviously, abandoning a disciplined approach to saving would be a dire mistake.

One simple solution? Take matters into your own hands. (The earlier, the better.)

Sit down and set some medium- and long-term savings goals with your child(ren) and discuss what it will take to reach them. You can build the conversation around real-world achievements they’re likely to want for themselves: the opportunity to attend a specific college and graduate debt-free, for example, or to purchase a car once they get their license.

Once you’ve agreed on the goals and estimated the total, you can get busy creating a strategy. (This is why earlier is better: the quicker you get started, the more likely your family is to get there.)

While your kids are still very young, of course, you’ll be doing most of the footwork. But get them involved as quickly as possible. For example, you might fund an investment account in your child’s name in their early life, and then begin asking them to make their own contributions once they’re old enough to earn an allowance or get holiday cash from grandma. Other ways to help kids “make” money before they’re old enough to work include allowing them to help with the family business or rewarding them for academic performance.

Help them understand the type of account they have, the underlying assets in their portfolio and the options available to them. You might even consider letting them sit in on meetings with your trusted advisors.

The key here is to include them in the plan, incentivize them, and treat them as capable participants in making their goals reality. Children rise to the level of responsibility we give them—and when they’re trusted with real goals, real numbers, and a real plan, they begin to see themselves not just as kids, but as owners of their financial future.

Establish Their Credit History Early

Helping your child build credit early is one of the most underrated—but impactful—steps you can take to prepare them for adulthood. A strong credit history doesn’t just make it easier to qualify for loans; it affects interest rates, job opportunities, rental applications, business financing and even insurance premiums.

One effective (and easy) strategy: add them as an authorized user on your credit card. This allows them to build a credit profile, even before they turn 18, without taking on any actual debt. Instead, they’ll piggyback off your credit history—so as long as you maintain a low utilization rate, pay on time and keep your account in good standing, their credit will benefit.

You’ll ideally want to choose a card with a long history and zero balance. You don’t even need to give them the physical card; the goal is credit exposure, not spending access. (Tip: Before adding your child as an authorized user, confirm with your card issuer that they report authorized users to all three major credit bureaus, as some smaller issuers don’t.)

Once they hit 18, consider co-signing a secured credit card or helping them apply for a starter credit card with a low limit, paired with automatic payments and strict usage guidelines. Use this as a teaching moment: review credit statements together, walk through credit utilization ratios (aim for under 30%, ideally under 10%), and help them understand how to monitor their credit reports using free tools like their bank app or AnnualCreditReport.com. The earlier they internalize these habits, the more likely they are to avoid costly mistakes and make empowered financial decisions.

Teach Them the Real Value of Budgeting

Budgeting is more than tracking expenses; it’s learning how to make decisions. For children, this skill should be introduced as a tool for control and clarity, not restriction. Once your child has income, it’s critical that they don’t just hold onto it but actively manage it.

A powerful strategy to teach them how to allocate money is to draw a simple pie chart. This gives them a great visual representation of how to allocate percentages of income to specific categories. For a child (who has yet to enjoy the responsibility of paying for their own living expenses), that might look like 50% toward long-term goals (like education or retirement), 20% toward education and personal development (like books or learning tools), 20% toward short-term wants and 20% toward charitable giving. You can discuss the specifics with your child—and remember, the key isn’t perfection, but creating the pattern. You’re training them to pause, assess and assign every dollar with purpose.

You can even take it a step further by introducing monthly financial check-ins. Sit down with your children to review their progress, reflect on decisions made, and adjust allocations based on shifting priorities. This turns budgeting from a passive chore into an active, empowering practice—one that gives them agency, accountability and awareness. The sooner they adopt this mindset, the more confidently they’ll navigate real financial decisions in adulthood.

Here at Felton & Peel, we’re here to help you instill generational wealth habits, build confident young investors and guide your family toward a stronger financial future. We’re here to help—and your first consultation is on us.