Financial literacy becomes a whole different game once you become a parent.
The moment you hold that little one in your arms, something shifts. It’s no longer just about your own future, it’s about theirs too.
And now, research proves what we’ve always felt deep down.
A recent working paper from the National Bureau of Economic Research (NBER) found that people with children may grow almost 24% more wealth over their lifetime.
Yep, despite the upfront costs of nappies, school shoes, and the occasional Lego set, parents tend to build more wealth than those without kids.
And it’s not because parenting suddenly gives you a magic money wand. It’s because of something powerful called the “bequest motive”, a natural drive to build something that lasts beyond you.
Why Parents Are More Likely to Build Wealth
When you become a parent, you start thinking differently.
You budget (not that I like that word) more carefully, set goals with more meaning, and stop procrastinating about investing or retirement planning.
You get serious about the future, not just for you, but for your family.
In Australia, where the cost of living is always on the rise and property prices make most people’s eyes water, this mindset shift is a superpower.
Parents often adopt better financial habits simply because they have to. And that sense of urgency can be a blessing in disguise.
The short-term costs of raising children might feel overwhelming, but the long-term effect is often a more consistent, purpose-driven approach to money.
That’s financial literacy in action—not just understanding how money works, but using it with intention.
How Financial Literacy Becomes a Family Legacy
The beautiful thing about financial literacy is that it’s not just something you do for yourself. It’s something your kids can learn from, too.
Children watch what you do far more than what you say. You’ve heard this before but let it sink in for moment.
If they grow up in a home where money is spoken about openly, where money planning is normal, and where investing is a topic at the dinner table, they absorb that mindset.
You’re setting them up not just with an inheritance, but with the ability to manage it wisely. This is a passion of mine, generational wealth!
In Australia, we still don’t teach money skills properly in schools. That means it’s on us, as parents, to fill that gap.
And that doesn’t mean you need to be a financial expert. It just means being willing to share what you’re learning. Let your kids see you save. Show them what a money plan looks like. Let them understand what you’re investing in and why.
Why Planning for the Future Starts Now
One of the more surprising things the NBER study found was that parents tend to retire later than non-parents.
But that’s not necessarily a bad thing. In many cases, they choose to work longer because they’ve created a lifestyle that works for them. They’re not stuck working.
They’re choosing it, on their own terms.
But here’s the part most people miss: this kind of freedom doesn’t happen by accident.
It starts with a plan. It starts with getting clear on what you want for your life, and how money can help you achieve that.
If you’ve got young kids, your edge is time. If they’re already teenagers or older, you’ve still got the drive and wisdom to turn things around.
There is no bad time to start building wealth. There’s only waiting too long.
Financial Literacy Is the Real Family Superpower
When it comes down to it, financial literacy is the one skill that has the power to change your family’s life for generations.
It’s not just about knowing how to budget or invest. It’s about using money to create options – options for your kids, your partner, and yourself.
I’ve worked with hundreds of Aussie families who thought they were behind, who felt overwhelmed by their financial situation. But once they learned the basics, and got clear on their values, something shifted.
They stopped feeling like they were surviving – and started building something that felt real.
Conclusion
So, if you’re a parent feeling the weight of responsibility, take heart. That pressure you feel? It’s not a burden. It’s motivation. It’s fuel.
Let it drive you to learn. To act. To build. Because your kids aren’t just watching, they’re learning.
And the habits you create now could shape their financial future for decades to come.
To schedule a Smart Investor Call and start the journey to plan your financial future, click the link here to find a time that works for you.
