Financial Education for Kids: Its Impact on Success in Life

Any parent can tell you that kids will model what they observe—both bad and good. Ask any mom who has ever let an expletive slip out in front of a toddler: invariably the little darling will trot out “Mommy’s word” at the most inopportune moment!

The same is true of financial behaviors. Kids who grow up in a home where a budget is followed and where saving and investing are a priority are much more likely to make wise financial choices as adults. Conversely, if you grew up in a house where credit cards were always the answer to the latest needs (or wants) and bill-paying time was fraught with tension, it’s probable that you’ll take those same spend-now-pay-later behaviors into your adulthood.

But financial education outside the home can make a huge difference. Even kids who may not have the advantage of a financially stable or secure home can learn the principles of good financial decision-making, which in turn greatly increases their chances of becoming financially responsible adults.

A 2018 study sponsored by the National Endowment for Financial Education reported that overwhelmingly, kids who were exposed to good personal finance principles during their K–12 years were more likely to seek out lower-cost student loans or grants when making decisions on financing their college educations. And when they graduate from college, those same students tend to have lower delinquency rates on debt and better average credit scores, according to a 2020 study conducted by the investor education foundation of FINRA, a financial industry regulatory group. Finally, a study conducted by the Brookings Institution found that student participation in financial literacy studies was highly correlated with superior results in asset accumulation and net worth achieved by age 25.

But even if your kids don’t have access to a personal finance course at their school, you can still access high-quality programs to help them acquire the knowledge and attitudes that contribute to success. Online resources like MoneyTime,, and others offer fun, parent-guided activities that help kids learn sound principles delivered in age-appropriate contexts. In other words, you don’t need to wait for the schools to do it for you: you can take charge of your kids’ financial education.

The research makes it clear: kids need access to quality information about personal finance in order to have the best chance of becoming financially independent adults. And there has never been a more crucial time than the present for parents and other concerned adults to make sure they get the financial education they need.

At Empyrion Wealth Management, we work with family stewards and others who are committed to the financial literacy and wellbeing of future generations. By offering personalized financial coaching, investment management, and access to world-class experts in estate planning, tax strategy, and other important financial sectors, we help our clients develop successful plans that provide for their futures and also the futures of those they care about. To learn more, click here to read our white paper, “Family Stewards.”

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Empyrion Wealth Management (“Empyrion”) is an investment advisor registered with the U.S. Securities and Exchange Commission under the Investment Advisers Act of 1940. Information pertaining to Empyrion’s advisory operations, services and fees is set forth in Empyrion’s current Form ADV Part 2A brochure, copies of which are available upon request at no cost or at The views expressed by the author are the author’s alone and do not necessarily represent the views of Empyrion. The information contained in any third-party resource cited herein is not owned or controlled by Empyrion, and Empyrion does not guarantee the accuracy or reliability of any information that may be found in such resources. Links to any third-party resource are provided as a courtesy for reference only and are not intended to be, and do not act as, an endorsement by Empyrion of the third party or any of its content. The standard information provided in this blog is for general purposes only and should not be construed as, or used as a substitute for, financial, investment or other professional advice. If you have questions regarding your financial situation, you should consult your financial planner or investment advisor.

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