5 practical ways you can help your HENRY children build lasting wealth

16 September 2026

Earning a competitive income can make your life more comfortable, but it doesn’t automatically lead to long-term wealth.

This is especially the case for those described as “High Earners, Not Rich Yet” (HENRYs). The term was first coined by Fortune journalist Shawn Tully in 2003 to describe people with strong earnings who had not yet built significant wealth.

International Business Times reports that many professionals earning six-figure salaries say long-term financial commitments mean that a £100,000 income no longer feels comfortable.

Higher salaries can come with:

Higher housing costs
Larger tax bills
Lifestyle expectations
Student debt
Childcare costs
Family responsibilities.

As such, someone may earn considerably more than the national average but still feel that meaningful wealth is out of reach.

This is one reason it might be worth bringing different generations into family financial planning conversations.

Helping younger family members build strong habits early could make a significant difference to their future financial wellbeing.

So, if you have adult children or grandchildren who are earning well but are yet to build substantial assets, there may be ways you can support them beyond just passing on wealth.

Continue reading to discover five financial lessons that could help your HENRY children build confidence and make the most of their income.

1. High earnings are only useful if they become healthy habits

While a higher income can make life more comfortable, it can also create a false sense of security. This is because as earnings rise, spending often does too.

A larger home, better car, and social commitments can quickly absorb any surplus income. This is known as “lifestyle creep”.

It doesn’t necessarily involve reckless spending. In some cases, it can happen gradually as someone becomes more used to an expensive way of living.

This is why financial education is essential. For younger professionals, understanding how to budget, prioritise goals, and invest for the long term could make a significant difference.

A Financial Planner could help them step back and ask practical questions, such as:

“How much of my income am I actually keeping?”
“What do I want my money to achieve over the next 5, 10, and 20 years?”
“Am I building wealth or simply maintaining my lifestyle?”
“Are my pension and investment contributions appropriate for my earnings?”

These are all useful questions to ask early, before habits become harder to change.

2. An emergency fund could stop small setbacks becoming major issues

Higher earners can still be financially vulnerable if they don’t have much accessible cash.

Unexpected costs – such as home repairs, a period off work, or a change in employment – can create pressure if most of their income is already committed elsewhere.

It might be wise to save between three and six months’ worth of essential household expenses in an easy access savings account.

For HENRYs, this figure might be higher than expected as their regular outgoings may also be higher.

Building this safety net could provide children or grandchildren with valuable peace of mind. It may also prevent them from relying on high-interest debt, selling investments at the wrong time, or asking family for support.

Once this emergency fund is in place, they can focus more confidently on their long-term goals, such as saving in a pension or investing for the future.

3. Valuable income should be protected

For HENRYs, their income is likely their most valuable financial asset, funding their lifestyle and paying for a mortgage.

Yet, they might insure their home, car, or pets before properly protecting their income.

We can help your children understand whether their existing workplace benefits offer enough protection. For instance, their employer might provide sick pay or private medical insurance, but these benefits may not be enough on their own.

They may also want to consider whether income protection, critical illness cover, or life insurance is appropriate. This is especially vital if they have dependants, a mortgage, or other significant monthly commitments.

Protection is about making sure that a period of ill health or injury doesn’t derail children or grandchildren’s progress towards their long-term goals.

It’s important to remember that financial protection plans typically have no cash-in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary between product providers and will be explained within the policy documentation.

4. Tax-efficient saving could help turn income into long-term wealth

Once someone is earning well, tax planning becomes increasingly important. For instance, in the 2026/27 year, the standard Personal Allowance is gradually reduced by £1 for every £2 of adjusted net income above £100,000.

This can create additional challenges for a child or grandchild earning a higher income.

Pension contributions can be a practical way to reduce adjusted net income while also building long-term retirement wealth.

Individual Savings Accounts (ISAs) can also be helpful, as the annual ISA allowance stands at £20,000 in 2026/27 and returns within are free from Income Tax and Capital Gains Tax.

Of course, the right balance between pensions, ISAs, and cash savings will depend on their goals and time frame.

It may be beneficial to keep money needed in the next few years in cash. Longer-term money may have greater potential for growth if it’s invested, but remember that investments can fall as well as rise in value, and your child may get back less than they originally invested.

We’ll help them understand which allowances are available and how to use them sensibly.

5. Paying yourself first can make building wealth feel automatic

Perhaps one of the simplest habits for HENRYs to develop is to pay their future selves first.

Rather than waiting to see what’s left at the end of the month, they can arrange for money to move automatically into savings, pensions, or investments shortly after they’re paid.

This can help to remove the temptation to spend first and save later. It can also make building wealth feel more normal.

Over time, regular contributions may help them build momentum, especially if their earnings increase and they gradually raise their contributions.

Just ensure your child or grandchild is being realistic. If their target is too ambitious, they may keep dipping back into savings. Conversely, if too low, they may miss out on opportunities to make better progress.

We’re here to help your child or grandchild set an appropriate savings and investment target that is aligned with their income, goals, and family circumstances.