THE FUTURE OF FINANCES: HOW TO TEACH YOUR CHILDREN TO BE MONEY SAVVY
Part of being an enlightened parent is being thoughtful about how we teach our kids about adult life. Of course you want to prepare them to make good choices as an adult, especially when it comes to finances. You may feel unequipped, or you may be concerned about passing on your own bad habits. So, how do you teach your children about smart financial decision-making? What lessons should you teach? Is leading by example enough? Raising a child to be money savvy doesn’t have to be hard, especially if you have valuable lessons to pass down. However, it will take a little reflection of your own finances and a conscious commitment to pass on these aspects of adult life.
Kids look to us to learn about life and they learn more from what we do than from what we say. Accordingly, we can best teach our children to be money savvy by modeling the habits we want them to take on for themselves and by involving them in the process. A good place to start is by being transparent about your financial habits when the opportunities arise. For example, you could have a monthly financial meeting and include your children. Each month review your household income and expenses, like a business owner would when reviewing their profit and loss each month.
When you do your estate planning, involve your children in the process by having a family meeting once the planning is done. Explain the planning and introduce your children to your estate planning attorney, that way they know who to turn to in the future should they need assistance.
Modeling sound financial decision-making for your children is an excellent opportunity to take a deeper look at your own financial habits. This is a good time to take an honest look at your finances to make sure you are on track to meet your goals. Assess your financial health and consider taking steps now to secure your financial future. Practice what you preach and know that your children are watching. Make sure you are modeling habits you would be proud for them to develop as they enter adulthood.
If you need guidance in assessing your own financial habits, or preparing your children for a healthy financial future, contact an experienced Estate Planning Attorney at Kira Doyle Law, at our office in St. Petersburg, FL, at (727) 800-3782.