Successful Women | Nurturing moneywise children

June 20th, 2018 | | Successful Women

Teach your children to treasure their financial legacy

Most parents appreciate the importance of traditional edu­cation in their child’s development considering the obvious intellectual and social benefits. Yet all too many forget that a financial education is also crucial for ensuring their offspring’s long-term well-being.

The good news is it’s never too early or too late to begin sharing your financial wisdom and experiences with your family. By taking the time to teach your children the value of money, you’ll have the comfort of knowing they’ll understand how to care for their own financial legacy when the time comes.

AN ESSENTIAL SKILL

Like reading, financial literacy is an essential skill, but unfor­tunately, it’s not typically taught in school. Rather, it’s up to parents to pass on their financial knowledge to ensure the next generation is capable of taking care of the wealth they’ve built.

Pre-kindergarten age is a great time to introduce the basics, including the idea that you must work to earn money in order to pay for items and services, as well as the value of different coins and bills. As they get a little older, your child can start doing chores and earning an allowance. Help them go through the motions of saving up for something they’d like to buy and deciding whether or not it’s a worthwhile purchase.

With pre-teens and teenagers, there are several other steps you can take, such as helping them open a savings account with their earnings from chores, babysitting or other jobs. Share your own tips on managing a budget and introduce them to the concept of investing and saving for retirement. Simply being transparent with your children about the realities and costs of living can go a long way in preparing them for the future.

SHARING YOUR FINANCIAL LEGACY

While products such as trusts and wills can help ensure your wishes are carried out, they can’t give your heirs the true understanding of how to save, grow and spend money wisely. In fact, if your children are going to receive a sizable inheri­tance, they may get overwhelmed by sudden wealth without a solid foundation to rely on. It’s also a good idea to introduce your children, when they’re ready, to your financial advisor and other professional partners, so they’ll know where to find expert guidance when dealing with money issues.

 

Material created by Raymond James for use by its advisors. The information contained herein has been obtained from sources considered reliable, but we do not guarantee that the foregoing material is accurate or complete. Raymond James is not affiliated with any other entity listed herein. © 2018 Raymond James Financial Services, Inc., member FINRA/SIPC. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc. 17-BDMKT-2796 BS 04/18

70+ | Bypassing Probate

Bypassing Probate You may have heard about the horrors of probate, but in truth, probate has gotten an undeservedly bad reputation, especially in recent years. […]

Under 60 | Considering an Offer to Retire Early: Should You Take It?

Considering an Offer to Retire Early: Should You Take It? What is it? In today’s corporate environment, where cost cutting, restructuring, and downsizing are the […]

Under 30 | Can You Afford to Have One Spouse Stay at Home?

Can You Afford to Have One Spouse Stay at Home? Can you afford to have one spouse at home? For many families, this is an […]

Top