It’s back-to-school season. For some of us, that means watching our kids head out the door with full backpacks. It can also be a moment to reflect. What do we wish we’d learned in school … especially when it comes to managing money?
Typically, the financial concepts we rely on every day were not part of our curriculum. We learned money habits through trial, error, and real-world experiences. And many clients we work with tell us the same thing: “I wish someone had taught me this sooner.”
At StackStone Wealth, we believe financial confidence is built over time, with the right guidance, clear information, and support you can trust. Whether you are managing your own household finances or thinking about how to build financial confidence in your children, this guide helps offer insights for families, individuals, and investors.
Why is money a hard topic to talk about?
Some of us grew up in homes where money was a private subject, only discussed when there was a problem. That silence can create discomfort around topics like saving, debt, or investing. But it doesn’t have to stay that way. It starts with asking questions and getting comfortable learning together.
Understanding compound interest
Compound interest is the concept that your money can grow. Understanding that your money earns interest, and that interest then earns interest, can be foundational to long-term wealth. The earlier you start saving and investing, the more time can work in your favor. It’s also a great conversation starter around goal setting and delayed gratification. Learn more about the power of compound returns here.
Knowing how credit scores work
Credit is central to many parts of life—buying a car, qualifying for a mortgage, sometimes even securing a job or apartment. Teaching the basics of responsible borrowing, timely payments, and how credit utilization works is helpful for navigating adulthood. Learn more about understanding your credit score here.
Understanding taxes
Another common question is, “Why didn’t school teach us how taxes really work?” People often misunderstand tax brackets, deductions, and how different types of income are taxed. Withholding, estimated taxes, capital gains, and retirement distributions all come with different tax implications. A foundational understanding of taxes can help individuals and families avoid costly mistakes and make better decisions year-round.
How can you teach your kids financial skills at home?
Involve your kids in simple money decisions: setting a goal for a purchase, comparing prices at the store, or explaining why you’re contributing to a retirement account. Consider giving them hands-on experience through earning and managing allowance. Talk about how you decide to save, spend, and give.
Here are a few ways to model financial habits at home:
- Use real-world examples. Explain why you save for emergencies, contribute to a retirement plan, or review your insurance coverage.
- Practice goal setting. Ask family members what they’d like to save for and help them break it into manageable steps. This can apply to anything from a toy or bike to a car or first apartment.
- Start with small decisions. Involve your children in choosing between needs and wants, setting savings goals, or comparing product prices.
- Normalize financial conversations. Talking about money at the dinner table or during errands to help make it less intimidating. The goal is to create openness.
Even casual conversations about how a paycheck is broken down, why insurance matters, or what a 401(k) does can go a long way. The goal isn’t to create perfect financial literacy overnight. It’s to create a foundation of curiosity and more confidence.
Let’s start the conversation
At StackStone Wealth, we believe financial knowledge is a lifelong process. Our team is committed to helping you align your financial plan with your values, goals, and the legacy you want to build.
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