Nothing quite makes you worry like your kids do.
It’s all too easy to see why some parents can get just a bit overprotective of them. Especially when it comes to matters of money.
Yet, you can’t be there to guide them forever. In fact, you could be doing them a lot of harm now if you’re not preparing them for their future.
So what can you do to make sure that you’re a pair of hands lifting them to financial independence and not dragging them down?
Teach Them About Later Life, Now
A lot of kids get out into the world and find themselves in charge of their own finances and have no idea what to do about it.
They’re likely to be making mistakes that will negatively impact their futures well into their twenties. It’s up to you to at least provide the information they need to avoid that.
You don’t want your children to be poor for life and neither do they. Start talking about the importance of putting towards a retirement, early.
Teach them about credit card debt and how to use credit properly. Help them understand that it’s not all about working for money, but about finding investment opportunities.
Make sure they understand that the decisions they make now will have a big impact on their future. When it comes to money, there are very few ‘trial runs’.
Help Them With Apps
Nowadays, there are all kinds of apps that can help with money.
From budgeting to measuring expenses and finding cheaper deals. The market is more complicated than it was in the past, and using tech can help you and your kids learn how to be smarter with money.
You can see that even a few examples from places like pcmag.com can make it a lot easier to start being responsible with money. We all know how tech happy the growing generation is.
You might find that they’ll take to electronic lessons a lot better than they’d be able to listen to your lectures.
Provide for Them
Money smarts aren’t all the difference in those who are able to achieve full financial independence and those who aren’t.
There are elements that don’t have a lot to do with personal finance skills. A savvy customer might not have the sheer luck of a more careless individual.
That’s because true wealth is something that’s built on over generations. It’s inherited and used to seed better finances down the line.
So you need to make sure that your wealth is getting passed on properly. It’s not enough to just write a will. You need to make sure it’s not contested, as well.
For instance, you can include a no contest plan. This means if someone does get greedy and wishes to get more of your inheritance, they can be entirely barred from it.
Don’t Leave Them in Debt
A lot of people will assume that, because they’re financially independent, they are beholden to no-one.
The truth is that you have a potential to leave a great amount of debt to your children. Enough to burn through the inheritance or even get them into long-lasting debt, themselves.
One of the debts that can be inherited, for instance, is a mortgage.
If you leave a grown child with a mortgage and they already have the house, the prospect of selling could just end up costing them more in the long-run.
You should also think about the expenses following your passing, as well. Parents who don’t provide arrangements for things like funerals leave the bill to their kids instead.
You need to start looking at contributions services like http://www.burialinsuranceplans.com/ now, not later.
Fix Your Own Habits
A lot of the learning our children do is learned by example.
Things like tax, investing, and retirement planning, you need to explain yourself. But other things can easily be passed from parent to child by practice.
For instance, if you’re more inclined to budget your finances, your children will grow up with a knowledge of money organization.
If you’re constantly dealing with credit card debt, they might normalize this behavior. You have a lot of potential to pass on bad financial habits.
You also have the potential to pass on good ones as well. So make sure you’re not making any mistakes they could pick up on and make their own.
What are You Doing for Your Kids Financially?
Make sure your kids are able to live in a happy future financial independence. It’s about sorting your own affairs and helping them learn how to sort theirs out. It’s all about using the right lessons and tools for both generations.
What are doing to help your kids understand how money works and provide for them in the long term?
Share your thoughts below.