(Part one of a two-part series.)
At TrueNorth Wealth, we value each of you as clients. As your local financial advisors, we want to help you reach your financial goals, whatever they may be.
Many of you have expressed the desire to not only take care of your family today, but also to leave a financial legacy for them. That financial legacy might mean giving your family all the money you can as a result of your hard work.
Perhaps more importantly, your financial legacy includes what you have taught your family about how to view money, earn money, save money, build wealth, and give back. Their self-reliance should strike a balance with the wealth you leave.
Start talking with children about the value of money at an early age. Here are five suggestions:
1. Start early and make it fun.
Begin with things you are already doing, such as reading. Several children’s books are designed to teach young children about money, including Trouble with Money and One Cent, Two Cents, Old Cent, New Cents. Check your favorite online bookstore or library for other resources.
2. Help children learn to love earning and counting money.
Showing children the difference between a quarter, dime, nickel, penny, and dollar can be both fun and educational. Have your children regularly count the spare change in your pocket or purse and put it in a savings jar. Apps like Count Money will help kids practice counting money.
3. Teach them to give.
Charitable giving may be an important part of your long-term wealth-building plan. Instill this same value in your children by teaching them to give back. Examples might include buying something small for a sibling or friend in need, donating to your church, or donating to a favorite charity or other worthy cause. Let your children find what is important to them, and support their choices.
4. Help children learn the value of a dollar.
Don’t rob your children of the experience of working and earning at a young age. Paying kids for extra things they do around the house teaches them that the things they want cost money. Encouraging children to work and save for things they want can pay great dividends as they grow into adulthood. Remember to teach your children to pay themselves first.
5. Learn from what is going on around you.
When situations appear bleak, kids get scared. Use that as a teaching tool. Emphasize that your children are safe and that they still have a house, food, and money in the bank because of good planning.
Finally, it’s important to plan for your kids’ future. Contact TrueNorth Wealth about setting up a college education fund for each of your children. Call us at 801-316-8175 to schedule a one-on-one appointment with a fee-based financial planner, located in various Utah offices, or learn more about college savings accounts by visiting our website at https://www.truenorthwealth.com/college-saving-plan.