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Affluent Investor | April 30, 2017

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Have You Had the (Money) Talk With Your Kids?

(Photo by 401kcalculator.org) (CC BY-SA) (Resized/Cropped)

(Photo by 401kcalculator.org) (CC BY-SA) (Resized/Cropped)

Many families struggle with when to let their children in on their conversations about money. Or how to approach their parents in the desire to help or rest in the knowledge they have prepared financially.

My advice? The earlier, the better.

Depending on the ages of your children, openly discuss your budget, your financial plans, and goals. Just as you talk about the Lord as you go along the way, teach your kids about handling money throughout the week.

Involve the children when shopping. Show them how to buy what you need, not want (except for special occasions). Demonstrate self-discipline.

Give teens a clothing allowance so they learn to shop seasonal sales and save for what they need. Once they have a job, they should have a checking account and know how to properly use a debit and credit card. And, the importance of paying it off each month! Read books, attend seminars together, and impart the truth that God owns it all. We are His stewards.

Teach them how to buy used vehicles and real estate. Your expertise will impact their future decisions.

At least one relative outside your marriage should know the locations of key documents, codes or keys to safes and safety deposit boxes. At some point, reveal trusts, estate plans, and long-term health care wishes. If you use an investment planner, allow the children to attend a meeting and get to know the advisor.

This is important for you to do with elderly relatives as well, because you need to be prepared for the time when they are no longer able to make wise decisions.

 

Originally published on Handwriting on the Wall.

Chuck Bentley is CEO of Crown, a non-profit business and personal finance policy and educational organization, and author of “The S.A.L.T. Plan. How to Prepare for an Economic Crisis of Biblical Proportions” and “Root of Riches, What if everything you think about money is wrong?”

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