Children often learn their first lessons about money from the adults they’re closest to. Whether it’s listening to parents discuss a purchase or watching them pay bills online, kids are observant and their relationship with money is often shaped by what surrounds them. If you are a parent looking to instill financial wisdom in your children, here are some ways to get started.
Set a good example. Kids often model what they see. Be intentional about the example you’re setting. Proactively discuss money with your children. Talk about what’s important to you money-wise and use everyday moments to bring it to life such as bringing them along when you speak to a financial advisor or consider an expenditure.
Share knowledge. You can give your kids important life skills by building their foundation of financial knowledge. Shape good habits with simple lessons about how to track spending or saving up for something special.
Why wait until they’re on their own to talk about the value of good credit or to explain how compound interest can make savings grow? Talk about the rewards (and challenges) of delayed gratification and the perils of debt. As they get older, emphasize the importance of financial security and the value of professional guidance.
Encourage goal setting. Instill the habit of goal setting early. Discuss your own goals – such as paying for a family vacation or saving for a new car – and how you follow through on them. Encourage your children to set a goal or two of their own.
Reinforce the value of work. Children learn the value of a dollar sooner when they are exposed to the effort that goes into earning each one. Consider whether you want to provide an allowance or pay them for helping with chores. When they start a parttime job, talk through the various ways they can allocate the money earned. It’s human nature to be more careful when spending your own versus someone else’s money.
Introduce the concept of budgeting. Budgeting doesn’t have to be a negative concept. Having a spending plan
can be empowering because you know exactly what money is going to meet each need and goal. Start explaining this concept early on. Kids should understand that you impose limits on your own spending, and why it’s important to live within your means. For example, a trip to the grocery store can be an opportunity to share why you make the choices you do.
Model philanthropy. If giving back to the causes you care about is important to you as an investor, it can be impactful to show your children the power of giving. You might suggest they apply a savespend-share philosophy toward their own money. The idea is to set aside a portion of their allowance or earnings for future wants or needs, spend another portion on today’s wants or needs, and give a portion to causes they care about. Whether it’s enacting a spending philosophy or having a conversation with your child about how you use your money to give back, passing down your philanthropic values can be a rewarding experience for both parties.
Be a resource. Most kids make a few financial mistakes as they mature into adults. Let them know they can turn to you for guid-
ance. Encourage them to continue to build smart money habits and remind them they don’t have to navigate their financial journey alone.
Duane J Lusson, CFP, ChFC, CLU, MSFS, is a Private Wealth Advisor with Ameriprise Financial Services, Inc. in Ottumwa, Iowa. He specializes in fee-based financial planning and asset management strategies and has been in practice for 30 years. To contact him, call 641-684-4200 or stop by his office at 527 W. Second in Ottumwa, Iowa.
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2024 Ameriprise Financial, Inc. All rights reserved. File # 6216983.1
No Appreciation
My son, Walter, lives in suburban Houston, Texas. He decided he wanted to try his hand at bee keeping since I was having so much fun and such little success at it. He purchased all the equipment necessary for the endeavor and was getting ready to purchase his bees. He had made arrangements to put his hive on a nearby property with an open field away from populated areas. Due to a change in circumstances, that property was sold. Unable to find another place to keep his bees and hesitate to put them in his back yard for fear of being sued by the
neighbors, he decided to bring his equipment to me to use.
I have one hive up and running so I decided to use his hive as a trap in an attempt to catch a wild swarm. If successful, I would not have to transfer the bees from a conventional trap, rather just move the hive to my bee yard. It seemed like a simple solution. Bees that have lived through or are descendants of bees that have lived through an Iowa winter, have a much greater chance of survival than those from warmer climates. Swarm traps are made from lightweight materials for a good reason. Transporting a box full of bees can be challenging. A hive box is heavy and awkward. I had not considered the difficulty in
getting it down when I decided to put the hive box on top of a deer stand at the edge of a timber. My wife and I could drive by and see if any bees were going in and out. After checking at regular intervals, Sunday, we saw bees. There were perhaps a thousand hanging from the front of the hive. I was so excited; I could barely contain myself. I immediately started planning how to get them off the stand and into the bee yard.
I thought before I got too involved with the move, I should go back and check to see if bees had moved in or were just hanging around on the outside. I put on my bee suit and went back to check the hive. When I climbed the deer stand and opened the lid, there were thousands of bees inside, already building honeycomb. That had to have been there a week or so. After putting ratchet straps around the hive and tied a rope to the ratchet straps to lower it to the ground, I left them to wait for sunset. I was so excited, I called Walter immediately to let him know there were bees living in his hive.
At sunset, Damon, my other son, met me at the deer
stand to help me get the hive down. Suited up, I climbed up and got behind the hive. A few bees were at the doorway who I swept in before taping the door shut. I lowered the bulky hive box down to Damon who put it in the back of the Ranger. I happily drove back to the bee yard, excited to have
another hive full of bees. Back at the bee yard, I filled the bee feeder with sugar water, just to keep my new swarm happy. I put a few branches in front of the exit to slow them down before I took the tape off. A couple bees came out but did not seem too excited. I opened the lid to hang the feeder and ad some more frames to find almost all the bees were gone. When I was putting the straps on the hive in the middle of the afternoon, they must have thought they were experiencing an earthquake or something. For whatever reason, they packed up and left leaving their new honeycomb and a couple hundred of their friends behind. I thought I had provided a nice home and would save them from being transferred from a trap to a hive. They obviously did not appreciate my efforts.
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