If you have children of any age, I can safely say that you have hopes and dreams for them. We all want our kids to be happy, successful, and act as good stewards of their own wealth—and our wealth when they ultimately inherit it. That’s why it’s never too early (or too late) to help your adult children develop a financial plan.
If you have your own financial plan, you know how critical it is in building sustainable wealth. Studies show that only 30% of households have a long-term financial plan. (1) But households that do are typically better at money: they save regularly, have positive investing habits, and know how to effectively manage their debt.
If that’s not convincing enough, let’s cover two more reasons why you should encourage your grown children to adhere to a financial plan.
It Helps Them Learn To Manage Their Own Wealth
One common struggle among affluent parents is teaching their children good money habits. You spent decades using your skills to build your wealth. But your children may have come after the hard work was already put in and didn’t pick up on the example you set.
Getting your kids on a financial plan not only helps shine a light on their current habits, but it can help them develop their own goals, dreams, and values outside of the family’s wealth. Plus, studies show that if your kids put their financial goals in writing, they’ll be 42% more likely to achieve them. (2)
It’s The First Step In Legacy Planning
If you have a financial plan, there’s a good chance legacy planning is a part of it. You want your children to inherit your wealth when you’re gone, but you also don’t want them to squander it. This is another area where having their own financial plan can help.
When a financial advisor works with the next generation of a high-net-worth family, it helps ensure the parent’s legacy seamlessly transitions to the children when they pass away. It also establishes an ongoing relationship between the advisors and your children, which opens the door for clearer communication and transparency down the road.
Creating multi-generational wealth isn’t easy. It involves more than just minimizing taxes and maximizing investments in the here and now. It’s about instilling the values and habits in your children that ensure they’re good stewards of wealth after you’re gone. That starts with a financial plan.
Get Started Today
Now is the time to introduce your kids to financial planning. And you don’t have to go at this alone; our team at 1on1 Financial is here to help you and your children on your financial journeys.
If you think your children could benefit from a financial plan, have them schedule a call with us. We’d be happy to do an annual review of their finances, during which we analyze their current financial situation, help them establish goals, and create an investment plan that aligns with their risk tolerance, goals, and time horizon.
If you’re interested in learning more, call our office today at 909-981-1720 or simply click here to schedule a free 15-minute introductory phone call!
About 1on1 Financial
1on1 Financial is an independent financial advisory firm specializing in guiding working and retired professionals, executives, and business owners along the path to financial well-being. Founded in 1997, we use a team approach to help our clients accumulate wealth, generate income, preserve their life savings, and strategically plan for the distribution of their estate. With more than 50 years of combined experience in the financial services industry, we remain true to our fundamental mission: to provide personalized guidance, treatment, care, and service so our clients can gain control of their future and feel confident in their financial life.