Help Kids Navigate their Financial Success

If you browse the internet, a google search will return 285 million results on how to teach kids about money. The jar system of spend/save/give is a popular one, there are games, lists of tips, rules on pocket money and eventually, you’ll probably stumble across the old marshmallow test.

This was the famous series of studies at Stanford University in the late 1960s and early 1970s where each child was offered one treat (a marshmallow) immediately or promised two treats if they waited 15 minutes.

Later in life, the children who were able to hold out for the larger reward tended to have better outcomes across the board: higher test scores, educational attainment and lower BMIs.

Interestingly, one of the follow-up studies done in 2012 altered the test slightly, by dividing them into groups and giving one group a broken promise before the test, and the other a fulfilled promise before the test. Those who had promises fulfilled prior to the test were willing to wait four times longer than the others for the second marshmallow. Essentially, when the child had a reason to believe delaying their gratification would be worth it, they were more willing to wait.

Which brings us to today’s youth. They’re still being taught delayed gratification is the key to financial success, but the waiting isn’t working for them.

They smell broken promises, so they’re the kids who don’t trust the second marshmallow will ever materialise – and for far too many of them, they’re right.

House prices rise faster than they can save, expensive degrees often don’t result in a job, and the face of the workplace is changing so quickly their career of choice might soon cease to exist.

Delay your gratification and spend less than you earn might still seem like solid advice – but in reality, it’s woefully inadequate in the modern context.

Today’s teens will need much more strategy than their parents ever did to achieve what their parents achieved – but they’re currently receiving outdated advice and are ill-equipped for the challenge.

Instead, they’re finding themselves dealing with student loan hangovers for a decade, for a qualification that’s done little to improve their career prospects, wondering how they’ll ever afford a home, let alone a retirement.

That makes their future sound bleak – and many do seem to see financial success as something reserved for the rich.

To change the trajectory of the little ones in your life, have a read of our top tips below;

• Teach Them to Budget with Real Numbers
  Rather than only using theoretical or small amounts, encourage teens to set up a basic budget using real figures for things they might buy or aspire to own. Let them track a small allowance or chore earnings, so they understand how quickly expenses add up. You could set them a dollar amount for the holidays and get them to create a budget that takes in the cost of accomodation (if you head away), food, transport, activities and shopping. If they manage to save on your amount? They get to keep it!
• Encourage Earning Opportunities
  Finding ways for kids to earn a bit of money—whether it’s through a weekend job, pet-sitting, or helping neighbours—gives them a taste of financial independence and shows the link between effort and reward.
• Introduce the Concept of ‘Needs’ vs. ‘Wants’
  This distinction can be a game-changer for young people. Encourage them to ask themselves before making a purchase: “Do I need this, or do I want this?” Practicing this habit can help them prioritise spending and save towards longer-term goals.
• Build a Habit of Saving and Investing Early
  Set up a small savings account or, for teens, help them start learning about investing basics. Even small investments add up over time and can give them a head start on future financial security. Check out Sharesies for more tips and a safe platform for teens to start trialling investments.
• Emphasize Resilience and Adaptability
  Let them know it’s okay if they don’t have it all figured out. Teaching kids to adapt, problem-solve, and persevere in the face of challenges can prepare them for the fast-changing job market and financial landscape.
• Foster Critical Thinking About Debt
  Debt can be helpful, but it’s vital to understand the risks. Help them see how credit cards work, the impact of high-interest rates, and why borrowing for things like education can be complex. Understanding these early on can prevent overwhelming debt later in life.
• Encourage Goal-Setting
  Help them set short-term and long-term financial goals. These might be as simple as saving for a concert ticket or as ambitious as a future home deposit. Achieving even small goals can build confidence and a positive outlook on money management.