“Also, as you weigh options about investing [for yourself] in real estate, diversifying your portfolio or making adjustments for retirement, keep your college student in the loop. Let them understand the concepts of interest rates, compounding, tax efficiency and risk,” Antaeus says. And convey “the importance of starting to invest at a young age.”
While it might be tempting for wealthy parents to funnel unlimited funds to children, they should, instead, limit the money and create a spreadsheet to monitor the inflows and outflows to help the children avoid developing an entitled lifestyle during college, Antaeus advises.
“When you get an older sibling on track, the younger children often follow suit,” says Sohn. “That is very satisfying for an advisor.”
The firm also says parents should not go it alone. “Seeking help from experts who serve other affluent families will help you find practical strategies for raising financially literate children,” Antaeus says.