Check out these four tricks used to get you to spend more (without you knowing it).
3 Minute Read
If you’re investing for retirement or if you’re working toward that goal, we don’t need to explain how you’ll benefit from it. The mere thought of a secure retirement will be enough to keep you on track.
But have you thought about how your money habits could affect your kids? We’re not talking just about inheritances, IRAs and mutual funds. We’re talking about instilling behaviors and character traits that will set them up to win with money!
Share Your Journey
A recent study of college students showed that nearly all the students who consistently demonstrated good financial behaviors said their parents had gotten them into the habit of saving as young children.
Local experts you can trust.Find an ELP
How can you get your kids into the habit of saving? The first step is to set an example of disciplined saving. If you’re ever tempted to take your foot of the gas of retirement investing, just remember that your kids are watching. Seeing you make tough choices in order to reach your retirement goals will stick with them into adulthood.
Next, talk with your children about why saving for retirement is a priority. Explain that it’s not just about piling up money for yourself. It’s about being sure you won’t be a financial burden to your kids. It’s about being a blessing to others as your wealth grows.
Then encourage your kids to think about the power of their own financial decisions. Challenge them to save up for a long-term goal like a car or college. It’s great practice for retirement investing!
Set the Stage for Wealth Building
As your kids begin to understand how today’s choices affect future outcomes, you can open the door to discuss more complicated money matters.
Rachel Cruze, Dave’s daughter, talks about this in a new book she wrote with her dad called Smart Money Smart Kids. If you’re open with your kids about why you invest, it’s natural to show them how you invest for retirement.
You May Also Like
“Even if she doesn’t put it into practice right away, laying that groundwork early on can change what she does with that first paycheck out of college,” Rachel says.
Let Them See How It Works
If you have an investing advisor who plays a role in your retirement plan, take your kids with you on your next appointment. Let them see how you and your advisor work together to make sure you’re on track to reach your retirement goals.
If your kids are old enough and earning their own money, they could also start their own retirement investing plan with a Roth IRA. An advisor with the heart of a teacher will take the time to show them that even though the dollar amounts may be small, they can have a huge impact on a retirement that’s half a century away!
“Don’t miss your chance!” Rachel says. “You have the power today to set your child up to be a millionaire by giving him this knowledge. And in doing that, you can completely change your family’s financial legacy.”