Congratulations Baby Boomers, six-thousand of you are officially entering your Golden Years every day. You’re reaching that wonderful age when you can retire, do all the things you put off and spend precious time with your children and grandchildren. Nearly half of 65-year-old Boomers are retired.
Whether you have already begun living the retirement of your dreams, or you are still working, you probably think about the estate you will leave behind. In an ideal world, your kids should be grown and self-sufficient so you are focusing on the next generation – those wonderful grandchildren. You and your lawyer, together with your financial planner, have carefully thought out your last wishes and put them into a will, but have you thought about what your heirs will do with their inheritance? I’m sure that some of you have lost sleep over this. Will they know how to handle money? Are they savers or spenders?
Your financial professional helps you manage your funds, but are you taking any steps to help your grandchildren grow up to be money savvy? They’re not going to learn personal finance in school, and many young parents are simply too busy with everyday life – the way you may have been too busy to teach your own kids. You, the grandparent, can lend a hand. Not only will you help your grandkids become financially literate, but it’s a great excuse to spend more time with them!
You have to talk to your grandkids about money from a very early age as this is when good habits start to form. Make sure that they come into contact with money, learn where it comes from and understand how it is used. Make learning fun with games and real-life experiences.
Help your children start their kids on my Work-For-Pay Allowance System as early as age three. They do two types of chores: Citizen of the Household chores, where they don’t get paid, and Work-For-Pay chores. Citizen of the Household chores teach them that good citizens of the world, the community and of the family, help out because it is the right thing to do. The Work-For-Pay Allowance System teaches them how to earn and budget their money. They will learn values and life skills that they’ll need to live in the real world – and also prepare them to handle their eventual inheritance responsibly.
Does your grandchild know the difference between need and want? As the child grows, the learning continues with an introduction to saving and investing, the concept of taxes, and don’t forget to teach them about charitable giving.
Remember that your goal is to assist your children in teaching their children, but it could be a good refresher for your own children. The learning should be a fun, bonding experience for the whole family. Regardless of your financial situation, if you’re spending time with your family, these really will be your Golden Years.