By Wealth Management Solutions
You have big dreams for your children. And, before they’re grown and out on their own, it’s important to teach them about things like a solid work ethic, kindness, respect, responsibility—the list goes on. Perhaps most important though is financial literacy, which is a skill that can make or break your child’s success as an adult.
Your kids will learn about money from someone. Don’t you want that someone to be you? Don’t know where to start? Let this be your guide (and don’t forget to schedule a meeting with us and bring your kids along!):
1. Be an Example
If you want your kids to grasp the importance of handling money wisely, let them watch you make financial decisions and model what you want them to learn.
The #1 money habit children learn from their parents is spending habits—good or bad. (1) If you spend money recklessly, your kids will see that. If you rely on credit cards to cover expenses or argue with your spouse about finances, they’ll accept that behavior as the norm. Your actions set a precedent, so be intentional about how you model money management to your kids and let their watchful eyes be a motivator to change any negative financial habits.
2. Start the Conversation
Since many areas of personal finance aren’t visible, sometimes a silent model isn’t enough. That’s why it’s vital to start the conversation now. Talking to your kids about money regularly leads to kids who are more financially literate. (2) It doesn’t have to be a long drawn-out discussion. Just let them in on your thinking and decision making as you go about your day-to-day life. At the grocery store, explain why you buy the off-brand cereal; at the bank, explain why the bank keeps your money and why you only take what you need from the ATM. These real-world scenarios help cement the whys and hows of money in your child’s mind.
3. Give Them Opportunities
For financial understanding to truly sink in, kids need to experience their own successes and failures. On a practical level, give your 5-year-old money to buy something at the store so he or she learns the value of different items and realizes that to obtain something like a toy, an exchange of money needs to take place. Try letting your 10-year-old figure out the cost of a new video game, plus tax, and help him or her save up allowance money for it. Let your teenager buy his or her back-to-school clothes with a set amount of money.
You might also want to consider registering for an upcoming financial literacy workshop for you and your children. Wealth Management Solutions is a proud sponsor of, “Foundations in Personal Finance,” which will be held on Wednesday, April 27 from 4:30 to 7:30 p.m. at the Bahia Corinthian Yacht Club in Newport Beach. Use this link to register today!
We’re Here for You
There’s no question that you want what’s best for your children. Whether it’s implementing an allowance, putting money aside for college, or saving for other major milestones in your kids’ lives, you might be wondering if you’re doing an adequate job. There are countless resources out there to assist parents in teaching their kids about money—where to start? We’d love for you to think of Wealth Management Solutions as your go-to resource.
We deliver purposeful advice and actionable planning services to manage your wealth, allowing you to extend your wealth and legacy beyond your generation. Our process aims to ensure the tools and services we provide aid you (and your children) into living a life of purpose. Our Planning; Your Future.
To discuss how we can walk alongside you as you set your kids up for success and save for your family’s future, schedule a complimentary consultation by contacting us at (949) 475-9700 or info@wms-llc.com.
About Wealth Management Solutions
The story of origin: Wealth Management Solutions was created in 2003, following the personal family tragedies felt by both partners of the firm. First, Richard Riva, the founding partner, lost his father unexpectedly and before any legacy planning was done that could have extended his family’s legacy beyond the fourth generation. Secondly, Martin Lombrano lost his father before plans and strategies were designed to protect his family’s wealth and legacy. Our partners and team members all share similar experiences due to a lack of planning for their families and are committed to our clients not experiencing the loss of their legacies due to a lack of planning. This is why we say: Our Planning; Your Future.
All investing involves risk, including loss of principal. No strategy assures success or protects against loss.
The opinions voiced in this material are for general information only and are not intended to provide specific investment advice or recommendations for any individual.
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(1) https://www.cnbc.com/select/how-kids-learn-about-money/
(2) https://www.fcnb.ca/en/guides/how-to-raise-financially-literate-children
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