Financial Advice to the Next Generation

Any parent new or experienced knows that financials play a major role in raising children. It is important to teach the younger generation good money values and, if possible, to aid them in kickstarting their futures.

1) Start when your children are young. You can invest with a more aggressive approach than you would otherwise do for yourself since it will be at least 2 decades until they will need to touch those funds. Even if the stock market does not yield great returns over that period, putting that money into investments tied to the stock market should be more productive than a savings account.

2) Show them how saving now will yield more in time, rather than a toy that no longer gets use after a few weeks. Using something like a piggy bank or a bank account can teach kids and teenagers alike to hold on to their money and save. Save vs. Buy Now mentality takes discipline and restraint.

3) Teach children the importance of compounding interest. If they understand that compound interest can help their money grow quickly over time, they will gain a huge understanding of managing money earlier in life and help avoid some adulthood mistakes.

For any more information on preparing for your child’s future, please feel free to call us to discuss different options and advice.

* Any opinions are those of the author and not necessarily those of Raymond James. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected.