Passing on your values regarding money can be an important part of your budget and estate plan. If you share your values with your children and grandchildren often and consistently, you may pass those values on to your loved ones, and they can enjoy your same successes.
The Key Takeaways
- Having discussions with your family about family finances, goals, and principles. As you do so, your family will learn how to take care of themselves financially and help your family grow closer.
- Teach your loved ones how to budget and make spending priorities, so they can do it on their own after you are gone.
Family Meetings About Money and Values
In your family discussions, you will want to make sure to have discussions that are appropriate to their age and maturity. Your kids may not need to know everything from the start, but they can still know general information and your operating values and priorities. You may even enlist family help to save for important purchases or vacation.
As time goes on and your children mature, you can give your children a voice or vote in family decisions. You may also become more specific in your family discussions about good financial practices, values, budgeting, and other principles and information you feel are important and they are ready for.
What You Need to Know
Many parents do not feel that they children need to know the family information. However, your children will often compare themselves, their homes, and their families with their friends. It may be a good idea then to talk with your kids to help them understand how you prioritize your finances, your values, and give them context as they observe the world around them. This can not only help them right now, but as they mature in life and begin to determine their own values.
Actions to Consider
- Include your children in the process of making big purchases. This can give you the chance to discuss saving, prioritizing, and buying within a budget. If your children want a bigger or better purchase, it may be a good time to reiterate saving and invite them to contribute.
- You may decide to give your children allowances. How you do this will be an extension of your values. You may give them an basic allowance, you may ask them to perform chores to earn allowance, or a variety of options based on their age, maturity, and your values.
- Have monthly family meetings. Doing so consistently can help everyone feel that they contribute and are important, and they can ask questions and learn and finances and budgeting.
- If your finances are going to have a downturn, talk about it openly with your family so they can understand how things will change and why. This will often help everyone be on the same page, and it may help develop innovative plans that you had not thought about.