There are moments when I pick my head up in the midst of a moment and think to myself, “Man, I don’t remember stuff like this growing up.” A few of my own moments revolve around scenes like Christmas, vacations, kids’ sports schedules, etc.
We all talk about how life is the most expensive it’s ever been. How is it that our kids are surrounded by more wealth than we remember as kids? I mean, can we remember life before the iPhone 34 or whatever we are at?
Of course, for many people, when you think about a financial advisor, you really just think about managing investments. That said, I love it when clients start asking about a healthy relationship with money for their kids. I'm constantly trying to learn from parents I look up to in this area.
Here are a few of my favorites I’ve picked up from families I admire:
Your kids learn more from waiting three weeks for something than from any speech you give them about money. I remind myself of that every time I want to hit the easy button.
Pay attention to what your family celebrates. Do you celebrate growth and doing hard things? Or do you celebrate appearances?
Let your kids see what things cost. A child who never encounters a price tag has no reference point for how life works financially.
Attach a standard to the work you ask of them. Chores you pay for regardless of quality teach passivity. Work you hold to a standard teaches pride.
Build gratitude as a practice rather than waiting for the feeling. Naming one thing somebody else did for your family keeps the habit from going dormant.
Your kids have no idea what your first apartment looked like unless you tell them. You’d be amazed how many think your nice home is the starting line.
Send them to work for someone who is not you. A summer job or a shift with a real manager gives your child a reference point you cannot hand them.
Give them something to maintain, not just something to own. Keeping a car or a bike running with their own time and money teaches more than receiving it did.
Put generosity in your family budget and let your kids help direct it.
Get aligned with your spouse before the moment arrives. Financial decisions tend to sneak up.
Audit what has arrived by default in your house. Some of my own spending started as generosity and became a standing expectation without anyone deciding it should.
If any of this is a live conversation in your house right now, send me a message. I would welcome the chance to think it through with you. It might not be about how your portfolio is performing, but there are some great ideas and tools that exist to help our kids form a healthier relationship with money.
This material is for informational purposes only and should not be construed as tax advice. Please consult a qualified tax professional regarding your specific situation.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA & SIPC.
