How to help your kids navigate financial responsibility before 18

Preparing a child financially isn't one conversation that happens when they turn 18.

The idea: It's a gradual process that starts well before adulthood, designed to give young adults the knowledge, experience and responsibility to make thoughtful decisions about money and wealth.

Why it's important: Wealth readiness is often overlooked. Many parents don't talk to their kids about family wealth plans and money until later in adulthood, leaving 18-year-olds ill-equipped to handle their finances.

• In a 2025 Fidelity Family and Finance Study, 52% of parents say they have not discussed net worth with their children.
• Additionally, 34% say talking about inheritance makes them uncomfortable.

Plus: The moment a child turns 18, parents can lose legal access to help them, making emergencies and finances harder to navigate.

• Even if you still pay for tuition, housing, insurance or other major expenses, you may no longer be able to access medical, academic or financial information unless the right authorizing documents are in place.

The plan: Prepare for this legal and financial handoff before your child blows out the candles on their 18th birthday. Aim to:

📚 Teach the fundamentals

Make sure young adults understand:

• Budgeting.
• Banking.
• Credit and credit scores.
• Taxes.
• Insurance.
• Investing.
• How to protect themselves from fraud.

🙋 Give your kids opportunities to make decisions

Allowing young adults to experience trade-offs and learn from mistakes while parents can still provide guidance can be incredibly useful. Let them:

• Manage a budget.
• Pay a credit card bill.
• Take responsibility for certain expenses.

💬 Talk about what wealth and money mean in your family

Access to money does not equal understanding, especially for young adults. Open conversations about wealth, values and responsibility can help young adults become thoughtful stewards.

• Go beyond discussions on budgeting. Talking about what wealth means to your family helps preserve it across generations.

💸 Explain what they already have

Young adults should understand accounts or assets established for them, including:

• 529 plans.
• Custodial accounts or trusts.

📑 Get the right documents in place. This way, you can more easily step in during an emergency or support major decisions. Documents may include:

• Health care proxies.
• HIPAA authorizations.
• Durable financial powers of attorney.
• FERPA releases.
• Clear guidance around custodial or trust accounts, where applicable.

The takeaway: Don't wait until significant wealth is transferred to begin preparing the next generation.

• Preparing your child before they turn 18 is an opportunity to start shifting from managing money for them to teaching them what family wealth means so that they can make thoughtful decisions with it.

Next steps: Start the process now by enlisting trusted support.

• For more than 50 years, AMG National Trust's financial expertise has helped families plan and build wealth and prepare future generations to preserve what matters.

Download this guide to start preparing your children for financial responsibility.