Resourceful Parents: 4 Keys to Raising Financially Savvy Kids

We want what’s best for our children, but when it comes to finances, how can we help them? Some say you should give them an allowance, but others say not always. How much financial information should you share with them?  Should you tell them how much you make?

These questions and more are answered by expert Susan Goldberg at Advisor.ca in her article which you can read here. The biggest point Sarah hammers home is that children are always watching. Every time you swipe your credit card or every time you donate money, your children are always observing and learning about how to manage money. Talk about money with your children! Less than a third of parents actually talk to their children about money, and this forces children to form their own opinions without the full picture.  Don’t just talk to them, but involve them as well. If you are donating money, help your children choose a charity. If you are buying something new for the family, let them help you find the best deal.

PHOTO CREDIT: FRAGASSON financial advisors  

PHOTO CREDIT: FRAGASSON financial advisors
 

In our world today, it is hard for children to understand the concept of money when they never see it coming in and only see their parents paying with a plastic credit card. Reader’s Digest suggests that you take the time to go to the bank with your children to show them that you must put money in at the bank and not just take money out. Among other suggestions in this article, one of the other most important things you can do is to use the right words when talking about money. Eliminate the phrase, “We can’t afford that” from your vocabulary. It implies a lack of choice, whereas the phrase, “I choose not to buy that so that we can save for a new television next month”, helps teach children the importance of prioritizing our purchases and saving for the future.

 

While there are many things you can teach your children about finances, the most lasting lessons will be taught by your example. Incorporate these four practices into your life and your children will be prepared for their financial future.

1)      Keep to Your Values – Ensure that the things you are purchasing while your children are watching are in line with your values.

2)      Talk – Take the time to talk to your children about their finances as well as yours, when appropriate.

3)      Visit Banks – Show your children that you put money into banks, not just take it out.

4)      Make Choices – Use words that suggest you are choosing not to purchase something rather than saying you cannot afford something.

 

You’re probably already doing some of these key things, but with increased awareness they can become more powerful teaching tools for you as a parent. There are many things to consider when raising children in our busy, hectic world, but by being a good example of responsible finances, your children will be more prepared for their futures.

 

Lifeplan Financial is a locally owned Managing General Agency (MGA) in Victoria and we work hard to give advisors the tools they need to succeed across all of British Columbia.  We give our advisors the independence they need with the support they deserve. “Because Your Success… is Our Success.”

Working Professionals: How Disability Insurance Insures What Matters Most

You’ve heard it before, but maybe you’ve never really believed that Disability Insurance holds much value for you and your family. Ask yourself, “If you had a machine in your home that could print $60,000 a year in REAL MONEY, would you spend a $600/year to insure it in the event that it broke? If you're like most people the answer would be a resounding "Yes!"

Well guess what... You are that machine! You make the money. I’m sure you’re better looking, and likely funnier, but your income is your primary source of wealth, and being insured could protect your future.

David Brown, from his years of first-hand experience as a financial advisor shares on Advisor.ca why Disability Insurance matters. You never think you will be the one in six Canadians to find yourself unable to work for three or more months, but the statistic is too high to ignore. Group insurance may include some provision for Disability, but it might not be sufficiently tailored to your needs.  David shares a great case study of a man named Jack, a health CEO whose Disability Insurance saved his business many years after obtaining coverage.

 

Photo credit: accuquote

Photo credit: accuquote

 

At Luke 1428, financial blogger Brian stresses the importance of protecting our most important source for generating wealth; our income. With Disability Insurance, we often try to dissect if we really need it, and if you review your Group Insurance coverage you may find that an individually-owned Disability Insurance policy really is needed. Maybe you need long-term coverage but your employer only offers short-term. If your group plan is insufficient, individual policies can be obtained to top up group plans to ensure you are protected. Do not depend on worker’s compensation or the excuse that you’re too young or too healthy to need Disability Insurance.

If you’re trying to decide how to move forwarded with Disability Insurance, follow these expert suggestions to act today.

1)      Review Group Plan – Does your current employer have Group Disability Insurance? Review your current plan carefully at home or with an advisor to determine if it fills all of your needs.

2)      Embrace Healthy Lifestyle – Some behaviors make a debilitating disability more likely to occur. Review your lifestyle and ensure that you are avoiding risky habits or activities.

3)      Be Honest with Yourself – We love to rationalize; but take time to read the statistics and don’t rationalize away today something that could save your future finances later.

Disability Insurance can be something that we put off with rationalizations, but just remember,  you are the machine, and your future wealth is determined significantly by your income. If you have any questions after reading these experts’ advice, contact an advisor today for a no-obligation meeting to discover what the next step in your financial future should be.

 

Lifeplan Financial is a locally owned Managing General Agency (MGA) in Victoria and we work hard to give advisors the tools they need to succeed across all of British Columbia.  We give our advisors the independence they need with the support they deserve. “Because Your Success… is Our Success.”