Introducing Impact Investing to the Next Generation
For many families, giving is more than a financial decision—it’s a shared value. But how do you pass that value on to the next generation in a way that truly resonates?
In this edition of Wiser Way to Give, we explore how families can introduce impact investing and philanthropic principles to young people—empowering them to align their values with their financial decisions and view giving as a lifelong commitment, not just a year-end transaction.
🌱 Why Start Early?
The Long-Term Benefits of Teaching Kids to Give and Invest with Purpose
Engaging the next generation in values-based investing and philanthropy helps build strong financial habits and fosters deeper awareness of social impact. Research shows that when young people are included in conversations about charitable giving and responsible investing:
✔ They develop greater financial literacy and confidence.
✔ They grow up with a heightened sense of purpose and generosity.
✔ They learn to make intentional, informed decisions with their money.
Engaging the next generation in values-based investing and philanthropy helps build strong financial habits and fosters deeper awareness of social impact. Research shows that when young people are included in conversations about charitable giving and responsible investing:
✔ They develop greater financial literacy and confidence.
✔ They grow up with a heightened sense of purpose and generosity.
✔ They learn to make intentional, informed decisions with their money.
Whether it’s choosing a nonprofit to support or learning how businesses can drive positive change, the earlier we start these conversations, the more meaningful the outcomes.
📊 How to Introduce Impact Investing & Giving by Age Group
1️⃣ Elementary Age (5–12): Building Awareness Through Action
💡 Keep it simple, visual, and hands-on.
✔ Set up a "Give, Save, Spend" jar system.
✔ Volunteer as a family at local nonprofits.
✔ Watch age-appropriate videos or read books about helping others.
Example: The Millers encourage their 8-year-old to donate a portion of her birthday money each year—and help choose the charity together.
✔ Set up a "Give, Save, Spend" jar system.
✔ Volunteer as a family at local nonprofits.
✔ Watch age-appropriate videos or read books about helping others.
Example: The Millers encourage their 8-year-old to donate a portion of her birthday money each year—and help choose the charity together.
2️⃣ Teens (13–18): Connecting Interests with Real-World Impact
💡 Encourage critical thinking and personal involvement.
✔ Let them research nonprofits that reflect their passions.
✔ Teach how investments can align with causes they care about.
✔ Involve them in year-end donation decisions.
Example: The Chens give their high schoolers $250 annually to donate to a charity of their choice. The teens then present their selections at a family meeting, along with a mission statement.
✔ Let them research nonprofits that reflect their passions.
✔ Teach how investments can align with causes they care about.
✔ Involve them in year-end donation decisions.
Example: The Chens give their high schoolers $250 annually to donate to a charity of their choice. The teens then present their selections at a family meeting, along with a mission statement.
3️⃣ Young Adults (18–30): Introducing Values-Based Financial Planning
💡 Shift the conversation toward long-term strategy.
✔ Explore opening a Donor-Advised Fund (DAF) with contributions they control.
✔ Discuss ESG and impact investing—supporting companies that prioritize the environment, social responsibility, and ethical governance.
✔ Encourage workplace giving or employer match programs.
Example: After college, Sam enrolled in his company’s charitable match program and now allocates a percentage of his paycheck to a climate-focused nonprofit.
✔ Explore opening a Donor-Advised Fund (DAF) with contributions they control.
✔ Discuss ESG and impact investing—supporting companies that prioritize the environment, social responsibility, and ethical governance.
✔ Encourage workplace giving or employer match programs.
Example: After college, Sam enrolled in his company’s charitable match program and now allocates a percentage of his paycheck to a climate-focused nonprofit.
📖 Case Study: A Family’s Journey to Purposeful Giving
Meet the Thompsons: A Multigenerational Impact Strategy
When Sarah and James Thompson transitioned out of their family business, they sought a way to ensure their wealth had meaning beyond financial growth. Working with a financial advisor, they built a giving framework that introduced their daughters to impact investing and long-term philanthropy.
When Sarah and James Thompson transitioned out of their family business, they sought a way to ensure their wealth had meaning beyond financial growth. Working with a financial advisor, they built a giving framework that introduced their daughters to impact investing and long-term philanthropy.
🔹 Ages 10–15: Volunteering, cause selection, and giving jars
🔹 Ages 16–21: Allocating real donation dollars and attending board meetings with their parents
🔹 Ages 22+: Helping oversee the family’s DAF and exploring ESG-focused investments
🔹 Ages 16–21: Allocating real donation dollars and attending board meetings with their parents
🔹 Ages 22+: Helping oversee the family’s DAF and exploring ESG-focused investments
✅ Outcome: Their daughters became active participants in both philanthropy and financial planning—and are now continuing the tradition with their own children.
💡 Takeaways for Every Generation
✔ Start the conversation early—habits form young
✔ Involve your children in real decisions
✔ Tie giving to your family’s financial education
✔ Make it personal, purposeful, and sustainable
✔ Collaborate with your financial advisor to set up structures like DAFs or impact portfolios that support your family’s legacy
✔ Involve your children in real decisions
✔ Tie giving to your family’s financial education
✔ Make it personal, purposeful, and sustainable
✔ Collaborate with your financial advisor to set up structures like DAFs or impact portfolios that support your family’s legacy
🗓️ Coming Soon in Wiser Way to Give
🔹 Hosting Family Giving Meetings That Inspire Participation
🔹 Designing a Charitable Mission Statement for Your Legacy
🔹 Designing a Charitable Mission Statement for Your Legacy
📢 Disclaimer:
This information is for educational purposes only and should not be construed as tax, legal, or investment advice. Please consult your financial, tax, or legal professionals before implementing any charitable giving or investment strategies. The information presented is based on sources deemed reliable; however, accuracy and completeness are not guaranteed.
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