Steven L White

After taking a few weeks off I am back in the saddle with several topics to talk about between now and the end of the year. I am going to mix it up a bit and focus more on protection strategies and Qualified retirement plans such as 401k, IRA, Executive deferred compensation plans. Today’s writing is more fundamental in scope than specific to these subjects however relevant to everyday issues and answers. If today’s topic is successful then parents in my community will have more success with their finances from start to finish. This  an idea came from  one of my recent clients. He told me that he had a new goal to teach his son the things that his dad is learning from me about money decisions and strategies. Wow that is powerful!  So how about getting your kids involved with learning about money and finances? How about getting the kids involved in understanding how to create, protect and manage the family bank accounts?  Ok, I agree that opening this door is a bit dicey but the kids don’t have to know everything. How about beginning the conversation with how and why saving money is a great strategy. Then introduce a strategy or two and see how it goes. Set a goal for 90 days at a time and include a recognition award. Celebrate accomplishment! With older kids that are approaching drivers age, how about a lesson on how expensive it is to buy and run a car. Begin with cost of acquisition, plates and license fees, insurance costs, fuel, maintenance, tires, oil changes; oh man the list goes on.

Eventually work the kids up to what mom and dad have to do to pay the mortgage, buy groceries, and pay the light, cable, cell phone, internet, school registration, deferred maintenance and so on. Go as far as how much this cost on a monthly, quarterly and annual basis. Maybe then graduate them to how much you pay in income taxes, capital gains tax, gift and estate taxes. Why you need Home, auto, life insurance and disability insurance. How about taking your children grocery shopping and assigning them to “value shop” for the family this week. Then the big one-Funding qualified and non-qualified retirement plans!

Ok, maybe funding qualified retirement plans is a little much for mom and dad so I will think of something to help with this . I bet between all of us we can come up with subject matter and topics that can be discussed at all age levels. Wow, do think we could ease some financial pain families are experiencing? Your thoughts? Any suggestions? Tell your friends, family and colleagues about this and let’s put it together.

Steven L. White