Wealth will transfer. This is a universally acknowledged truth, and it’s what makes cultivating strong relationships with your clients’ families – personally and professionally – so important. The next generation represents perhaps the greatest opportunity and biggest risk to your business’ future growth.
Everyone needs to learn the value of a dollar and how to make money work toward our goals, even little kids. In fact, the sooner they understand the power of financial planning and the role money plays in their lives, the better.
Capitalize on the opportunity you have with your clients’ young children and grandchildren and incorporate them into discussions early on regarding their financial future. Be proactive with engaging the next generation and consider sharing these kid-friendly lessons, activities and tips with your clients.
The early years 5 to 9
Lessons: Pre-kindergarten is a great time to start with the basics, including the idea that you must work to earn money in order to pay for items and services, as well as the value of different coins and bills. By age 7, children should be able to do some chores and earn enough allowance to buy small items. It’s important, too, to discuss needs and wants and why you might have to make choices (e.g., needs come before wants) or wait a little longer (to save for something you want more).
- GET TO WORK. Brainstorm different ways kids can earn money, like a lemonade stand, cookie booth or selling used toys and books.
- PLAY GAMES. Role-play using money-based games (e.g., restaurant owner and customer).
- START SAVING. Explain savings accounts and the concept of earning interest, and potentially open up a savings account in the child’s name.
Tip: Start saving habits early by stashing a percentage of any money received in each of four collection jars: one for saving, growing, spending and giving. The point is to build patience in order to later enjoy the benefits of disciplined saving.
Watch out for: Boring lessons. A short attention span demands fun learning activities.
The teen years 10 to 15