Money and wealth are rarely discussed enough, and that stores up problems for the future. Let’s talk about money and educate people from a young age.
Parents love the idea of passing on money to their children. They want the best for them, they want to give them opportunities. Years of hard work should not go to waste, and what could be better than super-charging your kids’ future!
However, how much is enough and how much is too much? It can be a tricky situation. Some people struggle dealing with inherited money. It causes panic and changes people.
Is it possible to bequest too much? If so, how can you prepare your children for such financial events?
Communication is king!
A problem shared is a problem halved. That’s an age-old saying, but very true. Talking about things helps. This certainly applies to money.
Whether you are short of funds or unsure what to do with new-found wealth, it is stressful when you dwell on it alone. Discussing options really helps.
That communication can and should start early. Unfortunately, many people find talking about money awkward. That’s probably something to do with our culture. Certain topics have always been brushed under the carpet.
So, begin with the simple things. Saving money in a piggy bank is always a good place to kick-start great habits with young children.
For teenagers, how about encouraging them to save a percentage of earnings or pocket money? We do this as adults, investing some of our salaries into ISAs and pensions. Why not youngsters?
At eighteen, as children become adults, how about birthday presents for life? Starting a pension or opening an ISA account will set up children for secure futures.
It will set a fantastic example.
Cover all financial bases
Becoming comfortable with money requires a solid education. It’s not just about savings. Discuss the mortgage with children and young adults. Explain interest rates, and ensure that the pros and cons of risk are covered.
As they grow older, involve them in the family budgets. That weekly and monthly food shop is the perfect place to start.
They will understand what things cost and how you sometimes have to make cost savings. They will understand the value of things.
Explain taxation and start a debate about giving to others and charitable donations.
We never stop learning. As children become adults, marry and have children of their own, they will still need advice, reassurance and help.
Get children ready for the future
Ultimately, you should talk about retirement. Tell them how you make preparations, and how your estate will be shared when you die.
That always sounds so final, blunt and cold. However, that’s life! Helping people prepare for the inevitable will help them in the long term.
How your wealth is transferred is important. Discussing it with an independent financial adviser can put your mind at ease.
Please be aware the value of investments or income from them can fall as well as rise. We’re here to help you make informed decisions.
Call us on 0808 1234 321 or firstname.lastname@example.org to arrange a no-obligation chat about wealth, your family and your future plans.