• For middle and high school-aged children: At this stage, your children will have interests that become more expensive. Whether it’s electronics, musical instruments, movies or concerts, your children will likely be spending more and looking for financial support.
• Begin talking about the ways you will (and will not) support their spending and introduce tools, such as a budgeting app, to help them learn responsible spending and money management.
• Introduce the basics of investing and finding real-world opportunities. For example, have them set up their own brokerage accounts and pick investments to get a jump-start on their financial literacy.
• For college-aged children and young adults: As young adults, your children will likely have many financial questions that arise as they navigate living independently, starting internships or jobs, paying taxes, and so on. This is a great time to introduce your child to advisors who can help them navigate the often-confusing world of W2s, 401(k)s, mortgages and investments.
• For adult children: No matter how old your children are, there are always opportunities for learning and growth.
• Consider sharing lessons about your own financial successes and failures. What do you wish you had done differently? What were your biggest financial successes and failures? These discussions might prove very helpful to children who have more life experience and can appreciate these insights.
• As children marry and have families of their own, they may need more assistance thinking about their own long-term financial planning and support of their families. This is where transparency to your wealth and plans for that wealth can help your children devise their own financial and estate plans.
Principle 3: Encourage Opportunities For Involvement
This last principle considers opportunities to involve your children in financial or investment decisions that can help demonstrate important family values and foster an environment of cooperation among your children or additional generations. Involvement can come in many different forms, but some examples include:
• If your family regularly gives to charity, consider allocating a yearly amount for the younger generation(s) to decide together which charities or causes to support.
• If you hold an annual family meeting, consider having your children and grandchildren participate in for all or a portion of that meeting.
• Set aside some funds (small or large) and ask family members to offer suggestions for investment opportunities that are aligned with expressed values. If you have not previously had a conversation about values, this exercise can also open the door to initiating that discussion.
Beth Mayfield is a senior wealth strategist for CIBC Private Wealth Management in Atlanta, with more than 25 years of industry experience.
Caroline McKay is a senior wealth strategist with CIBC Private Wealth’s Boston office, and has 13 years of industry experience.