Parents want to raise healthy, happy, well-rounded children who grow up to lead a life they love. We encourage them to be kind, eat well, work hard in school, and follow their dreams. But we can’t set our children up for success without also providing the financial education they need to create the kind of future we want for them. Financial literacy for children doesn’t happen on its own and it doesn’t happen in school. As a parent, it’s up to you to ensure your kids understand money and the role it will play in their lives.
Set a Good Financial Example
If you want your child to avoid financial pitfalls in the future, start by setting a good financial example at home. Whether you are rich, poor, or somewhere in between, keep in mind that your child is observing how you manage money and picking up your habits.
If you’re interested in beginning to invest but are nervous, or simply don’t have a lot of money to invest, why not start slow?
There are a multitude of ways to get started without risking a lot of money in the process. If you have $1,000 and are ready to start investing, here are some ways to do so:
There’s this lingering myth of “old money families” where wealth is easily passed from generation to generation. But studies have shown wealth attrition to be more common, as bad investment decisions, mismanagement and dilution of assets between heirs eats into the family fortune.
A recent phone call with an old friend led to a lengthy discussion on where to live in retirement. We touched all the bases: aging in place, independent living within a senior community, assisted living, and nursing care. The conversation paused, however, when I was asked the question: “How do you know when it’s time to go?”
JP Morgan’s 2019 Guide to Retirement includes a chart (see below) depicting levels of happiness and stress by age. For married Americans, happiness is lowest at age 46 and then continues to rise on an upward sloping curve all through the ‘golden’ years. (I wonder if it has anything to do with the kids’ finally going off to college.)
It’s difficult to pass on reading an article with that title, but The Parent Trap is the title of a special report found in Barron’s. Not only was the title catchy, but the contents are very worthy of sharing. It’s difficult to summarize an article with this type of importance, so we’ll try to capture your attention by reviewing some of the highlights.
Parents want to raise healthy, happy, well-rounded children who grow up to lead a life they love. We encourage them to be kind, eat well, work hard in school, and follow their dreams. But we can’t set our children up for success without also providing the financial education they need to create the kind of future we want for them. Financial literacy for children doesn’t happen on its own and it doesn’t happen in school. As a parent, it’s up to you to ensure your kids understand money and the role it will play in their lives.
