Thanks, Mom, for all the great financial advice!

Several of our women leaders remember the valuable lessons their mothers taught them and share tips to help you teach your children about money

 

THINK ABOUT THE SATISFACTION you feel when you work hard, rise in your profession and have the means to support the causes you care about. Or the regret when you realize you’ve missed out on a potential investment opportunity.

Where do those emotions come from?

Your approach to money likely has its roots in childhood when your parents passed on valuable financial lessons. Every mom has her own methods for creating teachable financial moments, says Jennifer Chandler, head of Philanthropic Solutions at Bank of America Private Bank. “My mother had very little but always gave back to others. She stressed the value of working hard for the things you want and learned to be very creative with the little we had. If I wanted something, I knew I had to work for it.”

In the slideshow below, several women leaders at Bank of America share more of what their mothers taught them — plus some tips you may find helpful in passing on financial lessons to your own children. (Use the Financial Flash Card and Pop Quiz at the bottom of the page to get your kids thinking about key money concepts.)

How early can you start? Sooner than you think. Researchers have found that:

  • By age 4 or 5, children start to understand the relationship between buying and owning things
  • By age 5 or 6, they start to grasp the ideas of cost, prices, supply and demand1
     

Jennifer Auerbach-Rodriguez, head of Strategic Growth Markets and Client Development Executive at Merrill Wealth Management, began explaining the concepts of “have” and “have not” and “wants” and “needs” in very basic terms when her child was 2 years old.

As your children enter their teens, there are other more hands-on activities you can encourage them to try. In the video below, Savita Subramanian, head of U.S. Equity & Quantitative Strategy and head of ESG Research at BofA Global Research, shares how she started teaching her kids about the power of investing.

What about allowances — should you tie them to chores?

64% of parents who give their kids an allowance require them to earn it by doing chores.2

Nancy Fahmy, head of the Investment Solutions Group at Bank of America, started her daughter on an allowance tied to chores at age 10. It’s a good way to begin instilling the important value of working for the things you want. However, allowances don’t always need to be tied to chores or work. There’s no one-size-fits-all approach. What’s most important are the money management conversations you have around allowances and the lessons you impart to your children about spending, saving and giving.

The resources below can help you start conversations about money with your children. Use them to create your own teachable moments. (For more suggestions, check out this “Financial Education Handbook: Practical Ideas to Engage the Rising Generation,” from Merrill.)

Those conversations will change and become more complex as your children grow, and at some point, your financial advisor may be able to provide resources and guidance as well. But getting started early is key. “Motherhood is a journey and raising your children to be financially responsible is part of that,” notes Kristen Dugan, chief supervisory officer at Merrill Wealth Management. Thinking back on her own childhood, Auerbach-Rodriguez recalls, “Early experiences made me who I am.”

Explore these resources

What’s a ‘want’? What’s a ‘need’?


Moms, download this flash card and ask your kids, from toddlers to tweens, to identify the “wants” and the “needs.” Use this exercise to jump-start conversations about how knowing the difference can help you create realistic spending habits. Explain the importance of budgeting for your needs and saving up for the things you want.

Food

Puppy

Shoes

Toys

Housing

Bicycle

Pop quiz: Test your teens’ financial knowledge. Select an answer to learn more
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True or false: Your credit score is as important as your school grades

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True or false: Saving and investing are the same thing

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True or false: There’s more than one way to save for college

A private wealth advisor can help you get started.

Our advisors can help you follow your passions, build a legacy and have a positive impact on others.

1 Annual Review of Developmental Psychology, “Ownership and Value in Childhood,” 2022.

2 T. Rowe Price, “14th Annual Parents, Kids & Money Survey,” October 2022.

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