Sent: 06-07-2010 12:24:07
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Protect those unable to look after themselves
Protecting is taking action to ensure that those who are not able to look after themselves are kept from harm. It can mean acting in the moment if your loved ones are threatened, as well as anticipating future threats and finding ways to reduce or eliminate them.
When was the last time you stopped to think what would happen to your family if you were no longer able to provide for them? You can mitigate the risks to your family's lifestyle by building an asset base to fall back on in future, and by putting appropriate insurances in place to protect them in the event of your death, injury or illness until that asset base is built.
And you can protect your children's financial future wellbeing by teaching them about money from when they first show interest.
Encourage kids to put aside money for the future from an early age. This is what the 'wealthing' compartment in their MoneyEd Box™ is for. Let them know that this is money to see them through their lifetime, and regularly take the funds they save here and invest them in a long term investment plan.
The concept of the future is difficult for most kids to understand - this capacity doesn't really develop fully until early adulthood.
For younger kids, I've found explaining it in terms like 'when you are a really big girl/ boy', or 'when you are a grown up' help.
As kids get older, their ability to judge time improves, so you can do things like expand how long a savings goal will take to attain, and point out how people in your family have provided for their retirement (eg Grandma and Grandpa).
'Top 10 Ways to Teach Your Kids How to Save', 'Money Makes the World go Around' and the Parent's Teaching Guides have some great discussion points and examples to use to help explain about protecting the future.
For great resources to help you teach your kids about money, including the books and guides mentioned in these articles, see www.qld.kidsmoney.com.au. Leanda Kayess can be contacted on email@example.com, or phone 0409 057 952.
This email is general in nature only and does not constitute or convey specific or professional advice. Legislation changes may occur quickly. Formal advice should be sought before acting in any of the areas discussed. Be aware that the information in these articles may become innaccurate with time. Responsibility is disclaimed for any inaccuracies, errors or omissions. Particular investments are neither invited nor recommended and hence this publication is not "financial product advice" as defined in Section 766B of the above legislation. All expressions of opinion by contributors are published on the basis that they are not to be regarded as expressing the official opinion of any other person or entity unless expressly stated. No responsibility for the accuracy of the opinions or information contained in the contributor's articles is accepted by any other person or entity. Copyright: This publication is copyright. If you wish to reproduce this article you require a license, which can be purchased here, to do so.