When a child asks, “Why do we give money away if we worked hard for it?”, it forces parents to pause and reflect. It’s a deeper question, one most adults haven’t answered either.
Why give?
Why choose generosity in a world that’s always shouting, “Get more”?
This moment can prompt families to rethink how they talk about money — not just saving and investing, but giving. And it can spark something big: what if parents could teach children the psychology of giving through how they invest?
Not as an afterthought. As part of the plan.
Here’s how families can begin that journey.
The Problem: Kids Are Growing Up in a “Me First” Money Culture
Children today are constantly exposed to messages like:
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“Earn more. Spend more.”
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“Save for yourself.”
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“Only invest if you’re getting something back.”
While earning, saving, and investing are essential habits, these messages often overshadow the idea that money can also be used for good.
Generosity doesn’t just happen. It’s a learned behavior.
Research shows that giving can make people happier, healthier, and more financially resilient. Studies from Harvard Business School reveal that people who spend money on others report greater happiness than those who spend it on themselves.
When families build giving into their money habits early on, children develop long-term financial skills with stronger empathy and perspective — traits every smart investor needs.
The Shift: From “We Give” to “Here’s How We Give Together”
In generous families, giving isn’t just a rule — it’s a rhythm. It’s part of how they talk, spend, and invest.
This is where family investing with a philanthropic lens becomes powerful.
Imagine a household where:
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Kids help choose part of a portfolio that supports companies solving real-world problems.
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Parents explain how investing wisely creates space for giving.
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Giving decisions are made together around the dinner table.
Families who embrace this approach teach children that money isn’t just about personal gain — it’s also about collective good.
The Psychological Secret: Why Giving Changes the Giver
Scientific research has shown that giving activates parts of the brain associated with reward and trust. Dopamine and oxytocin — neurochemicals that trigger joy and connection — are released when people give.
In children, giving helps build a sense of identity: I’m someone who makes a difference.
In teens, it provides purpose: My money choices have meaning.
And for families, it fosters unity: We’re in this together.
The Greater Good Science Center at UC Berkeley highlights that generosity reduces stress, increases life expectancy, and strengthens communities through the development of social capital.
But giving has to be intentional. Giving out of guilt doesn’t create the same benefits as giving from a place of strength, vision, and values.
That’s why investing becomes a perfect training ground for lasting generosity.
The Plan: How to Teach Philanthropy Through Family Investing
If families want their children to grow up generous — and financially capable — here’s how to begin.
1. Make Giving Part of the Financial Framework
Many parents introduce the concept of “spend/save/share” through allowances. It’s a great start, but the conversation often ends there.
Instead, families can integrate giving into regular financial planning and investing. For example: “Each month, we invest a little to grow our future — and we give a little to grow someone else’s.”
This builds a healthy mental link between abundance and generosity, not scarcity.
Some families even create a separate “Giving Investment Fund” to grow money earmarked for future donations or mission-driven ventures. Reviewing statements together and discussing the impact helps children understand that generosity is a part of a broader financial picture.
2. Choose Impact-Investing Opportunities as a Family
It doesn’t take a lot of money to teach values through investing. Even $5 can spark a meaningful discussion.
Parents can explore ESG (Environmental, Social, Governance) funds or socially responsible platforms like Calvert, Ellevest, or Aspiration — all of which support causes like clean energy, education, and poverty alleviation.
When children are involved in choosing an impact investment, they begin to see how capital can support causes they care about.
Parents can simplify descriptions: “This company builds water filtration systems for communities,” or “This fund supports female entrepreneurs.”
Families can create visual boards with images of supported causes to help kids visualize the real-world effect of their investments.
3. Set a Family Giving Goal Each Year
Instead of random donations, families can set a measurable annual giving goal just as they do for savings.
Example: “Let’s aim to give $500 this year. We’ll earn it, save it, invest part of it, and give it to causes we care about.”
Create a visual tracker and celebrate milestones. If the family exceeds the goal, turn it into a teachable moment about how small, consistent actions lead to significant impact.
Letting children vote on where the donations go increases engagement and ownership. This not only makes them generous — it makes them thoughtful givers.
4. Tell Stories About the Impact of Giving
Storytelling cements the concept of generosity. Instead of saying, “We gave,” families can show children what changed because they gave.
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Share thank-you notes from nonprofits.
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Watch update videos from supported causes.
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Talk about the people and communities affected.
Encouraging kids to reflect or write their own thank-you notes adds an emotional layer that reinforces the value of giving. It also teaches them that generosity has a ripple effect that goes far beyond the financial transaction.
The Result: Confident, Compassionate Kids Who Know What Money Is For
Families that practice intentional giving raise children who are both financially savvy and purpose-driven.
These kids learn that wealth isn’t just about accumulation. It’s about stewardship.
One example: a teen who once helped set the family’s giving goal may later start a small business that donates a portion of its profits to a cause they believe in — demonstrating the long-lasting power of these early lessons.
Because ultimately, financial education isn’t just about budgets or returns.
It’s about values.
The Invitation: Start Small, But Start Today
Families don’t need a large portfolio to begin teaching philanthropy through investing.
What’s needed is the willingness to invite children into the story:
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Let them observe the family’s financial rhythms.
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Involve them in giving decisions.
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Encourage them to choose purpose-aligned investments.
The most valuable gift parents can give isn’t just financial security — it’s a sense of purpose.
It’s the belief that they have enough to give.
And it’s the understanding that generosity doesn’t reduce what we have. It expands what matters.
Want Help Building a Giving-Investing Strategy That Fits Your Family?
Mostt makes it simple to invest in a child’s future — and their values. With tools designed for parents and resources that grow with kids, families can start building a future that’s both financially strong and compassionately guided.
