Helping our children is wonderful. Every parent wants to make their child’s journey through life easier and more secure. If you are fortunate enough to be in a financially solid position, gifting can be a perfect vehicle to help educate children about money, financial responsibility and family heritage. Communication is the key to educating them on how to manage the money and use it to develop a fulfilling future.
Parents sometime either tell their children that they will not have to worry about money in the future or they just don’t tell them anything at all. In the first situation, you don’t want your children to feel that they don’t have to work to support themselves to have a productive and fulfilling life. You want to encourage them to reach their potential by developing a strong work ethic and allowing them to discover their own strengths and talents along the way. In the second scenario, if you don’t tell them anything at all, then they will not be prepared to handle financial matters. Find a happy middle ground by educating them.
If you do decide to start gifting your child at a young age, you might want to let them be involved in managing an account and having input into some of the decisions that come along. Have them think about saving and spending money and encourage them to give back in some manner that fits with your family’s money philosophy.
Parents need to focus on developing children’s talents, work ethic and community involvement through volunteerism. Help your child take charge of their future!
Answers from AZ