Guiding our youth. By Steve Marsten.

Recently I was dealing with a couple who are quite well off. Both have well paying jobs and they always holiday with their two young children overseas. One child is 13 and the other is 10. They had come in to discuss ways to improve their savings and debt reduction strategies.

Interestingly, their real issue was whether they were misguiding their children in respect to thoughts about money. How could they ensure that their children will be happy and well-adjusted adults? After all, that’s what we all aim for with all our children.

Now as financial planners and advisors, we don't offer advice on child raring. However, in the same way you give time and effort to reviewing, considering and planning your financial goals, you need to be strategic about how you pass on certain traits to your children. There are five areas to consider deliberately passing along to your children. These are:

1. Values
2. Principles
3. People (whom they associate with and perhaps eventually marry)
4. Finances
5. And spirituality

Children need to understand that life is about much more than just money. That said the most difficult job is getting your children to appreciate money and its value. Not to mention, appreciating the need to work hard for it especially early on. 

This may be difficult given the recent media feedback about the millennial attitudes that are coming through of entitlement, expectation and immediate gratification. Also younger people have never had so much information and access before them. Guiding them to have an enquiring mind with a good dose of scepticism and the belief that not everything on google is correct, reliable or even relevant.

Seeing income and wealth as only one part of a successful life is more likely to transmit their value over the time. 

Wealth includes non-monetary assets such as knowledge and values, beliefs, confidence and self-esteem. Throw in a good dose of humility and your children should become flexible to circumstance and well adjusted.

I don't suggest we are perfect with our children however keeping their feet on the ground and their spirits high with the goals aimed higher would be a great achievement. At Sothertons we share our experience and knowledge to make sure that a financial plan encompasses your goals monetary and otherwise. Call us on 4972 1300.