If you’re a parent, you worry. That’s fine. It’s a fact of life. It’s a big part of the job. But there are some worries (like “get that out of your mouth!” or “where did they track that in from?”) that come and go quickly. The others stay with you in the middle of the night. They’re about their future, their prospects, and what kind of life they can lead without you. It’s no surprise in these uncertain times that a lot of those late-night worries are all about money. What are the most common ones and what do we do about them?
The lessons left untaught
How sensible your kids are going to be with their money is a very common concern that parents have. However, you don’t have to and shouldn’t just wait and see. It’s never too early to start teaching them little lessons about finance. As early as they understand what money is, they can learn about saving with you helping them save pocket money and little pieces they get here and there to buy something they really want. They can get paid to do chores to help them understand that hard work is essential. As they get older, you need to have real talks about things like bank accounts, credit, overdrafts, and debt. These aren’t lessons that most people are going to get in school.
The fear of being a burden
You can help them ensure that they’re more sensible with their money, but many are also concerned that they might be an obstacle in that. No-one likes to think about what happens after they’re gone, but ignoring the question is a big part of the problem. For instance, who is going to take care of all the costs of dealing with the estate and arranging things after you go? The preparations are easier to make, with life insurance quotes in all sorts of price ranges. It’s a bit morbid looking into it, but it’s a lot better than leaving yourself something to worry about for many nights to come. The sooner you start such an arrangement, the less expensive it is, too.
The regret of leaving them nothing
A lot of parents aren’t content with just making sure they’re not contributing a negative to their kids’ finances, of course. Many want to help them along and leave them better off than they were left. To that end, you want to make sure that you have something to leave behind and that it does get left behind in the way you want it to. There are a lot of savings and investment packages geared for leaving a legacy to your children alongside any assets you have. But ensuring your will is organized as early as possible is going to make sure that those assets are left behind in the way you want them to be. No-one likes thinking of their kids arguing over what’s left behind but it happens more often than it should.
If you’re concerned about the financial future of your kids, that’s a good thing. You’re aware of an issue that a lot of parents go on blissfully ignorant of until it’s too late. You have time to teach those lessons, make the preparations, and ensure you do right by your kids.