Discussing financial matters with family can be very productive when approached tactfully. Your Stafford Thorpe advisor can help you ensure it’s a constructive experience. While many people feel uncomfortable discussing financial matters and estate plans, effective communication can provide an enhanced sense of security for everyone involved.
Teaching Children About Money
Starting early sets the stage for a lifetime of good financial habits. Parents can have a powerful influence on their children’s long-term financial security. The following are some simple ideas with large returns:
- Teach your children the concept of earning money. Explain how you work every day and what the money you earn pays for.
- Give your children a weekly allowance. Consider tying it to regular chores to teach them the value of earning money.
- Set savings goals. Let your child save up their allowance to pay for something they want.
- Respect all sums of money. Empty your pockets of small change into a jar, and let your children count it when it’s full. Illustrate how small amounts saved add up to larger amounts.
Talking To Your Spouse
Most couples don’t agree on everything, and they don’t need to. Your investment advisor can be a great mediator. Talk about your goals, investment objectives, and respective comfort levels. It’s important to come to agreements about priorities.
- What are your comfort levels with debt?
- To what extent do you want to support your children’s education?
- How do you envision retirement?
- How do you want your assets disbursed in your will?
- Is there anything special you want to do in your life that you haven’t done yet?
Wills and Estate Plans
How much you want your heirs to know about your will and your assets is a personal matter. It’s important to let your loved ones know where to find your will and important documents, and who has copies. Beyond that, it’s a matter of choice. While you may not want to disclose the amount your children can expect to inherit, explaining the basic structure of your estate plan can alleviate future tensions and provide a general sense of security.
