There’s an old saying: “It’s not what you make, it’s what you spend that counts”. Making the right financial decisions can mean the difference between success and failure. There’s just one problem: when do you learn how to make the right decisions? Too many people learn these lessons the hard way and never quite recover. Wouldn’t it be better if we could learn these important tools early on in life?
A recent 2011 study, “State of the American Family” by the Massachusetts Mutual Life Insurance Company (MassMutual), found that less than 40% of people say their parents stressed the importance of saving money to them at a young age. And close to 80% say it’s important that we educate our children on finances to ensure a strong economy in the future.
So how do we get there?
To address this problem, some advisors have started providing financial literacy to their client’s children and grandchildren. This is typically done via individual meetings or through educational workshops designed specifically for younger people.