Published by Taylor Financial Group (for women)
A recent report by RBC Wealth Management found that high-net-worth investors start their structural financial learning – instructions from family members, directions from advisors, or suggestions from financial literacy programs – at age 27. Furthermore, earlier research indicates that when transferring assets, wealthy families do not always provide background and context to inheritors. Female inheritors are even less likely to receive guidance than male inheritors, and 36% of women stated that they did not receive either professional or familial advice through wealth transfers. As a result, RBC found that inheritors often found the wealth transfer experience “confusing and lonely,” because they were “unprepared, uninformed, and unsupported.”
In order to prepare your children for their financial futures, you need to teach them about finance fundamentals, like budgeting and saving. On average, people believe that their children should start learning about budgeting at age 17, investing at age 20, and wealth transfer at age 24. However, if you wait this long, your children will be adults by the time they are learning about basic financials. Instead, start teaching your children about finance fundamentals when they are still children, so that they will be financially wise as adults.
There are many opportunities to teach your children about finance at a young age. For example, if your child has an allowance, you can talk to him/her about the benefits of saving and budgeting that money for a more expensive toy, rather than spending it every week on smaller items. For more ideas on how you can teach your children about finance, click here (https://www.parents.com/kids/responsibility/money-management/lessons-teach-kids-about-money/). Basically, if your child has access to money, you should be using that as an opportunity to teach him/her about finance. Furthermore, RBC’s research supports this approach, noting that women who are knowledgeable about wealth and focused on their family’s long-term financial health are both empowered and empowering. By teaching your children about basic financials at an early age, you are boosting their financial confidence and preparing them for their future. If you would like more ideas on how to teach your children about finance, feel free to reach out to us at Taylor Financial Group so we can help your family create a more positive financial future.