What to teach your children before they inherit money
Australia's children stand to inherit trillions of dollars in the decades ahead. The question is whether they'll have the money skills to make it last.
Over the next two decades, Australia is set to experience one of the largest wealth transfers in history.
Baby boomers will pass trillions of dollars to younger generations through property, superannuation and investments.
For many families, this transfer will shape financial futures more than any pay rise or inheritance before it.
But there is a challenge. Money passed down without financial understanding can disappear as quickly as it arrives.
The most valuable inheritance we can leave our children is not the money itself, but the literacy to manage it well.
Talk to your children about money early
In many families, money is still treated as a private or even taboo topic.
Children grow up hearing 'we can't afford that' or 'don't talk about money' but rarely learn how it works in practice.
These gaps in understanding can lead to poor habits and anxiety later in life.
The simplest way to build financial confidence is to talk about money openly. Explain how budgeting works in your household.
Show children how you make decisions between saving, spending and giving.
These conversations do not need to involve figures; they simply teach that money is a tool to be managed thoughtfully, not a source of fear or secrecy.
Teach practical money skills that last a lifetime
Financial literacy starts with small, consistent lessons.
Encourage children to divide pocket money between saving for goals, spending wisely and sharing with others.
When they earn their first income, discuss superannuation and the importance of paying themselves first.
Teenagers can learn valuable lessons from managing their own bank account or setting savings goals for something meaningful.
Mistakes made early, when the stakes are low, become lifelong lessons about responsibility and planning.
How to prepare children for a future inheritance
Wealth transfer should be more than a transaction; it should be a transition of knowledge and values.
By normalising conversations about money, you prepare the next generation to make confident, informed decisions.
Financial literacy is not about teaching children to chase wealth. It is about helping them understand how to use it wisely.
That understanding is what turns an inheritance into a legacy.
The takeaway: financial literacy is the ultimate legacy
The true gift is not the money itself but the mindset that comes with it.
Teaching financial literacy early helps children build confidence, independence and respect for money.
When you pass on knowledge and values, you create an inheritance that lasts far beyond the balance sheet.
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