Despite the proliferation of budgeting apps, custodial investment accounts, and digital banking, a new survey from Wealth Enhancement finds that 53% of American parents and grandparents believe children today are less equipped to handle money than they were at the same age. The findings underscore a growing disconnect between technological access and practical financial competence, a gap that wealth managers increasingly confront as clients seek guidance on passing down both wealth and financial wisdom.
Generational pessimism
The generational divide is stark. Sixty-one percent of grandparents say today's youth are less money-ready, compared with 46% of parents. Millennial parents are the most optimistic, with 40% believing children are actually better prepared than prior generations. Chloé Briel, a CFP and Senior Advanced Planning Manager at Wealth Enhancement, attributes part of the problem to the very convenience of modern financial tools. "That convenience can make it more difficult to teach the value of money and healthy financial habits," she said.
Children can check balances, receive digital allowances, and invest through custodial accounts with a few taps, but the abstraction from physical cash may erode the foundational understanding that earlier generations built through direct experience. The survey, conducted in 2025, polled a representative sample of U.S. adults who are parents or grandparents.
What families struggle to teach
The survey identified a hierarchy of difficult lessons. Avoiding impulse purchases and overspending topped the list, cited by 56% of respondents. Budgeting and everyday spending management came next at 52%, followed by understanding how money is earned and the value of work at 50%, and saving and delaying gratification at 49%. More complex concepts like how money grows through interest and investing were cited by 34% as hardest to convey, suggesting families struggle with basics before reaching investment principles.
Despite these concerns, a significant portion of families have not opened investment accounts for their children. Fifty-three percent of respondents said they had never done so. Among those who have, 22% opened accounts before the child's first birthday, reflecting a growing cohort that recognizes the power of compounding early.
Advisor opportunities
The findings arrive as the wealth management industry increasingly views next-generation engagement as both a business imperative and a service differentiator. Clients who feel their advisor is helping prepare their children for financial independence are more likely to consolidate assets and maintain long-term relationships. Practical starting points include scheduling family money conversations as part of the annual review process, recommending age-appropriate account structures, and connecting clients with resources that make financial concepts concrete for younger audiences. Even modest early contributions to a custodial account can become a teachable moment if the child is brought into the process.
For advisors, the survey echoes broader trends in decumulation planning and client optimism, where intergenerational wealth transfer is becoming a central theme. As Wealth Enhancement's recent acquisitions show, firms are expanding to serve multi-generational client needs. The survey suggests that advisors who proactively address financial literacy may differentiate themselves in a competitive market.
