5 Money Lessons Grandparents Can Teach Their Grandkids
Starting as young as age 3, your grandchildren could reap a lifetime of rewards from these five basic financial skills.

If you are like many grandparents, you like your kids, sometimes, but you LOVE your grandkids. Being a grandparent is a special honor. You have a unique ability to shape your grandkids well beyond just spoiling them with sweets and sending them home.
Given how important financial skills are to succeeding at life, it’s surprising schools don’t teach our children more about money. As a grandparent, however, you can teach your grandkids important financial lessons — and you should! These lessons can leave a positive mark on your grandkids for decades to come.
Lesson 1 (ages 3-8): Delay gratification.
You may have to wait to buy something. This is a hard lesson for people of any age to learn, but building the foundation early is a key to financial success. It’s easy for adults simply to buy things for grandchildren who are looking up at them with pleading eyes. Instead, help them save money and set a goal to buy the item of their dreams. Create a “savings jar” that is clear, so they can see the progress, and help them count the money as they add to it.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Lesson 2 (ages 8-14): Hard work never hurt anyone.
There is a sense of satisfaction in us all when we work hard for something and achieve it. While we’re certainly happy to live in a country and time where 8-year-olds are not working in factories, completing some kid-friendly chores around your home — like raking leaves, dusting or cleaning up the garage — could help teach a valuable lesson about work and reward. As your grandkids get older, encourage them to become entrepreneurs by starting their own business babysitting, pet sitting or mowing grass. It’s a lesson that will serve them well throughout life.
Lesson 3 (ages 10+): Invest in the stock market.
You don’t have to be Warren Buffett to teach your grandkids about the stock market. Consider gifting your grandchildren shares of stock instead of the newest toys. Open an investment account and have them help choose a company in which to invest. Then review the stock quarterly and talk about the company, as well as any gains or losses. Your financial adviser can help you with the basics. Getting kids interested early about investing can have a profound impact on their wealth later in life.
Lesson 4 (ages 14+): Stay away from credit cards.
Credit card companies don’t make billions of dollars a year because they are a good deal for consumers. Talk to your grandkids about the mistakes you’ve made with credit cards and how you’ve fixed those mistakes. Avoiding high-interest consumer debt is a key factor in someone’s future financial success.
Lesson 5 (ages 17+): Pay yourself first.
“If I had only started saving earlier.” How many times have you said this to yourself? As your grandkids embark on their careers and first jobs, encourage them to save a portion of every check. A good savings target is 10% to 15%. If their company offers a 401(k), that’s a great place to start, especially if the company offers a match. If not, there are a variety of other savings vehicles. The earlier they start, the quicker the power of compounding takes effect.
These financial lessons are important for kids of any age. Don’t be scared to have these conversations with your grandkids — it’s a sure way to build a legacy and a foundation they’ll always be thankful for and remember.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Jim Martin is the president and founder of New River Financial Group with offices across Virginia. A Registered Financial Consultant and Accredited Asset Management Specialist, he has passed the Series 66 and Series 7 exams and is an insurance professional. Martin focuses on comprehensive financial planning to help individuals and business owners take control of their financial future.
-
Retire in Costa Rica With These Three Tax Benefits
Retirement Taxes Costa Rica may be a good place for retirement if you like the low cost of living and savings for your heirs.
By Kate Schubel Published
-
Five Ways to Ease Caregiver Stress
Caregiver stress is real. Here are five techniques to protect your health and happiness while caring for a loved one.
By MP Dunleavey Published
-
Financial Strategies Borrowed From the Big Game's Playbook
Like the best football teams, you can win at financial planning by executing a strategy, making halftime adjustments and staying focused on the ultimate prize.
By Frank J. Legan Published
-
Three Ways to Plan Now for a Social Security Shortfall Later
The outlook for Social Security is gloomy, but you can save now to protect against benefit cuts later. If the cuts don't happen, you'll still be better off.
By Tyler Jones Published
-
Extra Cash? Should You Pay Off Debt or Invest?
Depending on your financial situation, you might benefit from paying off debt, investing or both. Here are some things to consider before deciding.
By Anthony Martin Published
-
The Future of 1031 Exchanges Under Trump Looks Bright
As a real estate investor himself, President Trump appears poised to preserve the tax-deferring power of this strategy. But you still must follow the rules.
By Edward E. Fernandez Published
-
Gambling vs Investing: How to Tell the Difference
It's easy to get caught up in the excitement of placing a bet on the Big Game, but beware of letting that emotion drive your investing decisions.
By James Martielli, CFA®, CAIA® Published
-
Empowering Widows: Five Goals for Financial Security in 2025
Tackling these strategies one at a time, whether it's updating estate planning or reassessing investments, can help put you on track for financial stability.
By Stacy Francis, CFP®, CDFA®, CES™ Published
-
Private Credit: Coming Soon to a Portfolio Near You
Private credit could be a good source of diversification for sophisticated investors, but beware of the risks.
By Blaine Townsend, CIMC®, CIMA® Published
-
What Is Insurance Good For? Let Us Count the Ways
You might resent having to pay premiums, but when disaster or just a minor fender-bender happens, you'll be happy you have the financial backup.
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS Published