Do you want your kids to have a prosperous financial future?
First, ask yourself this: Will they become wealthy if they spend ALL the money they receive this Christmas?
The answer, of course, is NO. Here’s why:
If they spend ALL their money, there’s nothing left to save or grow. Spending SOME of their money is perfectly fine, but spending ALL of it leaves no room for wealth-building.
Spending ALL their money creates a mindset of consumption. This habit formed early, can be tough to break and may prevent them from building wealth later in life. Many adults today struggle to save because they developed a strong “spending-first” habit as children.
Building wealth takes time, but it starts with the right behaviours and habits. The earlier your kids learn these, the stronger their foundation for a financially secure future.
Why Christmas Is the Perfect Time to Start
For many kids, Christmas comes with the gift of cash. Instead of letting it vanish into fleeting purchases, why not use this opportunity to teach your kids valuable lessons about money?
Here’s how:
1. Build the Right Habit: Don’t Spend ALL the Money
It’s not about saving EVERYTHING—they can spend some or even most of their money, but encourage them to save a portion. Even a small amount is meaningful because it starts the habit of saving.
Explain to them that spending all their money might feel great in the moment, but saving means they’ll have more money to enjoy in the future. Over time, this habit can transform their financial future.
Research shows that many of our lifelong habits are formed by the age of 7, so starting young is crucial.
"Wealth beyond your wildest dreams is possible if you follow the golden rule: invest 10% of all you make for long-term growth." – Warren Buffett
2. Shape the Right Mindset: Talk About Saving
Kids naturally focus on what they can buy, and marketers encourage this by showing them all the “cool” things their friends might have. Without guidance, this focus can lead to a “Rich Mindset,” where having more “stuff” becomes the goal.
But here’s the catch: spending ALL their money leaves them with no savings, which technically makes them poor.
Teach them instead to develop a “Wealthy Mindset.” Explain that money isn’t just for spending—it’s a tool that can work for them, even while they sleep.
Help them understand that:
Wealth isn’t about flashy purchases—it’s about financial freedom.
Building wealth takes time. While they might hear stories about people getting rich quickly, these are often misleading. True wealth grows steadily over the years.
For a deeper dive, check out our blog: Rich Kids vs. Wealthy Kids.
3. Help Their Money Grow: Open a Savings or Investment Account
One key difference between wealthy people and everyone else is that wealthy people use their money to make more money. They save and invest, allowing their money to grow over time.
Even small amounts saved today can grow into significant sums over years. For example, money invested in the stock market has historically doubled every 8–10 years.
If you’re new to investing, don’t worry! It’s simpler than you might think. Our beginner’s guide to investing explains how you can set up an account and let your money grow with minimal effort.
For kids, a savings or investment account can be a fun way to track their progress. In our family, we involve our daughters by sharing a portion of our investment account with them, and they use a simple Money Tracker to see their savings grow (you can download our tracker here!).
For tips on opening an investment account for your kids, just out my blog: 10-year Investment Plan For Your Kids
Summary
This Christmas, while other kids may spend all their money on toys and gadgets, your kids can start their journey to becoming wealthy. They can still enjoy spending some of their money, but by saving a portion, they’ll build habits and a mindset that will set them apart for life.
Here’s a quick recap:
Build the Right Habit: Encourage them not to spend ALL their money.
Shape the Right Mindset: Talk about saving and building wealth.
Help Their Money Grow: Open a savings or, even better, an investment account.
By starting these habits now, your kids will have a much brighter financial future—and they’ll thank you for it someday!
Bonus: Want to dive deeper into teaching your kids about money? Sign up for our online course and explore more resources to help your kids thrive financially.
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Happy Holidays,
Will
P.S., It's not too late to grab a few copies of Grandpa's Fortune Fables to help more kids learn about money. Available on Amazon.
