There might be a couple of questions in your mind which may be a concern when your child is growing up:-
- Will my kids be able to maintain the style of living they have today?
- Will they have enough money, without having to wait for an inheritance & bequest?
- Will they earn enough after college to support their anticipated style of life?
- Will I be willing and able to supplement their style of lief until they can?
- Will my Wealth transfer happen in a way it benefits them, or it will create mess & quarrels after me for the inherited wealth?
If any of this question is giving birth to further dubious thoughts, then it is necessary to pause & rethink.
Your Kids are living lifestyle today is a baseline for tomorrow & many of them aspire for an improved one.
A couple of points to be followed to avoid the above questions:-
Have an honest discussion with your kids, make them understand where we are standing today & what he is thinking, have a deviation if any, how that can be bridged, due to lack of this discussion, majorly wealth transfers fail & kids end up wealth which his/ her parents have transferred.
Instil Strong family values, share your experiences & have a good discussion on the same which can imbibe family values. In an early age, parents are the only role model for their kids, so it is pretty easy to give a shape to their healthy financial habits.
Guide them on their financial mistakes, like overspending, not saving, frequent borrowing, or unnecessary spending, this will help them to rethink & walk on a proper guided path.
Very Important thing to be taught is only one & that is “Valuing money” no matter if you have a lack of it or in abundance, valuing money will make you & your kids happy in the long term.