Financial Education: The Most Valuable Gift You Can Give

Over the next two decades, Australians are expected to pass on more than $3.5 trillion in assets through intergenerational wealth transfer, reshaping the financial future of many families. Whether the amount is large or small, members tell me they see this as an opportunity to build capability rather than simply hand over money. Financial education, they agree, can last far longer than a cash gift.

When I recently sought member input on this topic, they shared practical ways they are helping prepare the next generation for financial independence:

• Mentoring younger family members in money management
• Attending investment events or webinars together
• Sharing personal investment experiences and lessons learned
• Encouraging participation in discussions about family investments
• Introducing simple, structured investment tools such as ETFs as a starting point for building diversified portfolios

The skills and habits developed through financial education help younger generations make informed decisions, build resilience and take advantage of opportunities, regardless of whether they will receive a substantial inheritance or only modest support.

Balancing Generosity and Your Own Financial Security

Many members ensure their own financial independence before making significant gifts. They start by calculating what they will need in retirement to determine whether any surplus can be passed on earlier. Income stability is a common priority, with many favouring dividend-paying shares, preferably franked, to meet ongoing expenses.

Some are already providing assistance, for example helping with a first home deposit, paying for education, or reducing home loan debt. These decisions follow thoughtful discussions about timing, tax considerations and the impact on all family members.

Estate planning also plays an important role. Having a clear, up-to-date will and an appropriate structure for transferring assets ensures your wishes are carried out efficiently and fairly. For some, this includes joint-named investments or insurance bonds so assets pass directly to the surviving owner without unnecessary delay or tax consequences.

The Emotional Side of Wealth Transfer

Financial education and wealth transfer are not just about numbers. Members say helping family while they are still alive lets them see the benefits first-hand, strengthen relationships and reduce stress for the next generation. One member told me, “I chose to help my kids when they needed it, not decades later.”

Others value giving non-financial support, such as introducing family members to trusted advisers or encouraging them to build their own investment plans. This guidance can be as valuable as a financial gift, ensuring knowledge, experience and values are passed on alongside capital.

Why It Matters to All Investors

Even if you do not expect to leave a large inheritance, the principles of building financial capability still apply. Members without direct heirs are sharing their investment knowledge with friends, community groups or younger investors they mentor, ensuring their skills benefit others and creating a legacy that goes beyond money.

Passing on financial literacy is particularly important in a world where opportunities are expanding rapidly, but so too are the risks. Younger investors face challenges such as market volatility, economic uncertainty, high housing costs and the complexity of asset classes. Informed decision-making is essential.

Queensland Investor Summit: Learning Together

The upcoming Queensland Investor Summit, to be held face-to-face and virtually at The Langham Gold Coast, offers the perfect environment to explore these themes. Over two days, the program will feature market insights, investment strategies and practical tips from experienced investors, ASX Chairs and CEOs, and industry leaders. Attendees can connect with like-minded people in a welcoming environment while enjoying the coastal location.

This year, some members are attending with adult family members, using the event to learn together, exchange ideas and have meaningful conversations about building, managing and transferring wealth. There is still time to invite your own family members to join you, either in person or online.

The Summit offers concentrated learning, access to senior company leaders, practical strategies for navigating current markets and the chance to build financial confidence across generations. Whether wealth transfer is part of your plan now or in the future, the insights gained can help ensure your legacy includes knowledge and capability as well as capital.

Changing the Conversation on Wealth Transfer

The wealth transfer conversation is shifting from “What will I leave behind?” to “How can I help now, while I can see the difference it makes?” Members who take this approach say it allows them to address needs when they arise, share experiences in real time, and ensure the next generation understands the responsibilities that come with managing money.

Whether you are passing on substantial assets or simply a set of well-learned investment principles, the goal is the same: to empower others to make sound financial decisions. Your legacy becomes not just the money you leave, but the knowledge, habits and confidence you instil.

Disclaimer: This article is prepared by Rachel Waterhouse. It is for educational purposes only. While all reasonable care has been taken by the author in the preparation of this information, the author and InvestmentMarkets (Aust) Pty. Ltd. as publisher take no responsibility for any actions taken based on information contained herein or for any errors or omissions within it. Interested parties should seek independent professional advice prior to acting on any information presented. Please note past performance is not a reliable indicator of future performance.