What Happens to Generational Wealth When We Don’t Teach Teens About Money? 30 Financial Woes We Avoid By Teaching Teens About Wealth

Financial literacy is more critical than ever, but it’s important to recognize that teaching our teenagers tried and true financial principles like building their financial house, insurance, investments, money management and real estate, isn't just a beneficial choice – it's a crucial one. 

Teenagers and young adults have the most important financial factor on their side… TIME. 

And, as the saying goes “time is money.” 

Have you ever considered how much “free money” your family has missed out on by not teaching your teens about wealth and The Rule of 72? By not opening up financial accounts and insurance policies for the teens and young adults in your life?

It’s probably about $732,000. 

See, the thing is… the wealth that we want to build and keep in our families is out there. 

And, you don’t necessarily have to have a lot of money to build a lot. 

But, you DO need to have a lot of TIME!

That’s why as a financial advisor, I have three assignments: 

Guide you through the steps of building your assets, protecting them, making sure they are passed down when the inevitable happens. 

And… 

Share the Word of God to be sure that you are a great steward of the financial resources entrusted to you, especially since wealth and money are meant to be used as tools to bring glory to God. 

And… 

Help the young people you love, work with, mentor, or teach understand money and wealth at an early age to set them up on the best possible financial path. 

Because honestly, it makes no sense to be a great steward of building your assets if it just goes to waste once you pass away. 

I’ll be honest, one of the BIG ways your assets “goes to waste” is by not realizing the significant impact of not prioritizing financial education for teenagers and young adults.

So, in an effort to be in my assignment as a financial advisor, here are 30 financial woes we avoid by teaching teens about money and wealth early on. After all, would you rather have your assets passed down to your loved ones or to taxes and the government? 

Let's jump in!

1. Increased Debt: Teens who don't learn financial responsibility may be more likely to accumulate debt, such as credit card debt or loans, as adults.

2. Poor Savings Habits: Without early savings habits, individuals may struggle to build an emergency fund or save for long-term goals like college, buying a home, and retirement.

3. Limited Financial Independence: Teens who don't learn financial skills may rely on others for financial support well into adulthood, hindering their independence.

4. Missed Investment Opportunities: Delaying financial education can mean missing out on the benefits of investing and the power of compounding interest over time.

5. Financial Stress and Anxiety: Poor money management skills can lead to financial stress and strained relationships as individuals grapple with financial challenges later in life.

6. Risk of Impulse Spending: Teens who haven't learned to budget may be more susceptible to impulse spending, leading to financial instability.

7. Limited Understanding of Financial Systems: Lack of financial education can result in a limited understanding of banking, investing, taxes, and other crucial financial systems that we all engage in and with.

8. Inadequate Financial Planning: Teens who don't develop financial planning skills may struggle to set and achieve their financial goals, such as buying a home or starting a family.

9. Reduced Opportunities for Financial Growth: Without proper financial education, individuals may miss out on opportunities for career and income growth due to a lack of financial knowledge.

10. Vulnerability to Financial Scams: Teens who are not financially savvy may be more susceptible to scams and fraudulent schemes, potentially leading to financial loss.

11. Difficulty in Achieving Long-Term Goals: Without financial discipline, saving for significant milestones like home-ownership, education, or retirement becomes much harder to achieve.

12. Strained Relationships: Financial conflicts within families and with peers can arise when teens lack the knowledge and skills to manage money responsibly.

13. Missed Opportunities for Generational Wealth: Not learning about wealth-building strategies can hinder the ability to create and pass down generational wealth to future family members.

14. Reduced Financial Security: Teens who neglect money management may face insecurity in times of unexpected events like job loss, illness, or economic downturns.

15. Limited Charitable Giving: Failing to grasp good financial habits can limit the ability to contribute to charitable causes and give back to the community.

16. Credit Score Impact: Teens who mismanage their finances may damage their credit scores, which can affect their ability to secure loans, rent apartments, or even get a job in some cases.

17. Inefficient Use of Resources: Without financial literacy, individuals may waste money on unnecessary expenses or fail to make the most of available resources and opportunities.

18. Increased Stress and Anxiety: Poor financial habits can lead to stress and anxiety, negatively impacting mental and physical health.

19. Lack of Financial Goals: Teens who don't develop budgeting skills may struggle to set clear financial goals and work towards them effectively.

20. Limited Knowledge of Taxation: A lack of financial education can result in misunderstanding taxation, potentially leading to errors and missed tax-saving opportunities.

21. Difficulty in Coping with Economic Changes: Teens who lack financial skills may struggle to adapt to economic changes, such as inflation or economic downturns, impacting their financial stability.

22. Impaired Career Choices: Financial irresponsibility can limit the career choices available to individuals since they may need to prioritize higher-paying jobs over their passion or interests due to financial constraints.

23. Legal Issues: Mishandling finances can lead to legal troubles, including issues like bankruptcy, foreclosure, or wage garnishments.

24. Struggles with Retirement Planning: Without early savings and investment knowledge, individuals may find it challenging to plan for a comfortable retirement.

25. Decreased Generational Education: The absence of financial education may perpetuate financial illiteracy in future generations, as parents may struggle to teach their children about money management.

26. Limited Entrepreneurial Opportunities: Teens who lack financial knowledge may be less prepared to start and manage their own businesses, limiting entrepreneurial opportunities.

27. Difficulty in Navigating Economic Uncertainty: Without financial skills, individuals may find it challenging to navigate economic uncertainty and make informed decisions during financial crises.

28. Reduced Philanthropic Impact: Inadequate financial management can hinder the ability to make a meaningful impact through charitable donations and philanthropic efforts.

29. Strained Mental Health: Poor financial habits can lead to stress, anxiety, and even depression, impacting overall mental well-being.

30. Lower Quality of Life: A lack of financial literacy can result in a lower overall quality of life, as individuals may struggle to meet their basic needs and achieve personal aspirations.

Early financial education can help teenagers avoid these consequences and lead to a more financially secure and fulfilling life.

Which of these wealth woes stand out to you the most?

Learn more about The Teens Guide to Wealth! The #1 resource teaching teens everything they need to know about money from a biblical perspective.