When you think about generational wealth, your mind probably first jumps to the assets you’ll one day pass onto your children and grandchildren. Maybe you’ve purchased a large life insurance policy as part of your estate planning, or maybe you have long-term investments or family heirlooms you want your children to inherit someday.
But true wealth is about so much more than just the number of dollars in your bank account. So when I think about preparing my children for their financial futures, I want to make sure I’m equipping them with the skills and mindsets they need, not just with an inheritance.
Talking About Money Makes a Difference
When I was growing up, my parents rarely if ever talked to me about money and finances. This is not unusual — in fact, COUNTRY Financial found in a study that only 13% of parents talk to their kids about retirement planning, and only 9% talk about managing student loans.
Do you avoid talking about money because it seems embarrassing or impolite to do so? Or do you push conversations about money under the right because your finances are a source of stress for you? You’re certainly not alone if you do these things, but frequent conversations about money are vital for your children’s future success.
After all, if you don’t teach your children about finances, then who will? Many countries around the world, even highly developed and educated ones, struggle to incorporate financial literacy into their school curricula, so much of the responsibility falls to parents.
In order to raise children who are well-equipped for the world we live in, today is the day to start talking about topics like saving, investing, and taxes. You don’t have to tackle everything right away, but by simply challenging yourself to talk more openly about money in your daily life, your children will naturally reap the benefits.
Model the Life You Want Your Children to Have
When I think about my parents’ lives when I was young, it’s so clear to me that they worked incredibly hard to make sure their kids were positioned to reach new levels of success in our education, finances, and careers. This is partly why I’m so passionate about helping my children, and their children after them.
It’s natural for parents to want a better life for their kids than the one they themselves lived. After all, part of being a parent is making sacrifices for your children, whether that’s taking a career break to care for them, saving up to pay for their education, or just putting your kids’ needs and wants before your own.
At the same time, it’s hard for people to imagine a better life if they don’t see it modeled for them. That’s why I spent so many years working to earn a higher income, not understanding that true wealth was found in experiencing freedom. I didn’t know that I could take a different path, because I’d never seen anyone do it before.
Whether you realize it or not, your children are watching how you live, and your mindset about money affects them more than you might realize. When you take steps to access financial freedom for yourself — such as by investing in tax efficient assets that help you build long-term wealth — they’ll see how much happier and freer you seem.
The seemingly small steps you take today can then have a ripple effect throughout generations, showing your children and their children that freedom is not only possible, but worth pursuing.
If you’re interested in learning more about the ways that First Generation Capital Partners can help you experience true freedom with investments that align with your goals, I’d love to connect with you. Please fill out this form to get in touch.