It’s not easy raising children. Never has been, but it seems to be harder now than it was for earlier generations. While there are far more important child-rearing responsibilities, the one I’d like to proffer is to strive to set a good financial example for the children or grandchildren in your life. This includes being prudent in the way you spend, save, and invest. Periodically discussing the family financial and investment situation with your kids will also help them understand the challenges that families must confront to be successful financially.
Another matter to keep in mind (as if this isn’t obvious to you already) is that kids differ in their attitudes toward money, just as they differ in just about every other facet of their lives. The way individual children and young adults handle money can range from very responsible to appalling. The point here is that as you endeavor to help your kids become financially responsible adults, take these differences into account. Finally, avoid the temptation to indulge them financially at every turn. Sometimes, the best financial advice you can give to a rapacious youngster is: “We can’t afford it.”
Smart Money Tips
- Do you have enough life insurance? If you’ve got people in your life who would suffer financially from your demise, then you need life insurance. If you’ve got kids, you probably need a lot of life insurance — $1 to $2 million is not an uncommon need for a breadwinner with a couple of kids. The basic insurance provided by your employer is never enough. On the other hand, if you’re retired or nearing retirement, your life insurance needs may decrease if family members who were previously dependent on you have somehow managed to become self-sustaining.
- Never underestimate the value of a debt-free retirement. While accumulating a sufficient stash of investments for retirement is the number one focus of retirement planning, eliminating debt is a close second. In my experience working with individuals and couples, those who retire with considerable debt almost inevitably remain financially challenged until the debt is paid off which may take many years. On the other hand, those who retire debt free almost certainly can look forward to a good financial future.
Food for Thought
The best thing about the future is that it comes only one day at a time.
-Abraham Lincoln
Money Can Be Funny
The trouble is not that you cannot take it with you, but that you cannot even keep it while you’re here.
Word of the Week
agerasia (ajuh-RAY-siuh) – The quality of always looking young or seeming immune to the effects of age.
Origin: From the Greek agirasia meaning “eternal youth.” This comes from the prefix a- meaning “not” or “against” and the word giros, “old age.”
His longing for agerasia has led to applying a half dozen facial ointments every morning.