Sent: 16-03-2010 10:05:15
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Have a Plan and Have Faith in the Plan
Having a plan for your life and your money is not enough. Faith in the plan allows you to hold fast even when it appears to be failing. A good example of this is holding onto your well chosen shares when the market is against you, having faith that over the long term, your portfolio will recover value and continue to grow.
Kids learn from your example of holding steady despite the headwinds, and take a sense of security from your resolve. Help them to understand that managing their money and investing wisely is a long term process.
For younger kids, explain that they can choose to put some of their pocket money towards savings and long term wealth. Explain it is not for now, but later. The savings are for things they want relatively soon, but don't have enough for now, and the wealth is for when they are very big girls or boys. When you start giving pocket money, start talking about how allocating money to these areas is part of a plan for their money. The plan should include times when the money is taken to the bank for saving and investing. Don't get caught up in how much they allocate where at this stage - just encourage them to split the money out - giving a mix of coins will help.
As the kids get older, planning can be expanded to include the regular amount of pocket money allocated to Living, Giving, Saving and 'Wealthing'. It may be a dollar amount, or a percentage. The plan is also more likely to be tested. They may learn to enjoy spending more than saving, so will want to use the savings for an unplanned purpose, or reduce the amount allocated. Great opportunities to talk about having faith in the plan.
What's your practice doing to help improve the financial IQ of your clients' kids? Discover how you can enhance your corporate social responsibility with the KidsMoneyRedBucketPrimary School Program. Contact Leanda Kayess at email@example.com or phone her on 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.