Submitted by Nancy J. LaPointe
Why teaching children about money is of interest? Over the last year or so as I’ve been working on developing a series of articles on financial matters. A topic that is regularly requested is centered around advising children on how to handle money. Further conversations with clients, peers and friends have been enlightening as to the multitude of reasons adults are seeking guidance in this area. Noted below are some clusters of adults who have shared with me their motivations for seeking out this topic.
Frustration with adult children: Parents of adult children are upset or bewildered by their adult children’s behavior or lack of ambition. The age range of these parents can vary from late 30’s to their 80’s. The comfort level that their children have with debt and particularly their spending habits around electronics and entertainment, in the parent’s mind is irresponsible. The children’s acceptance of low paying jobs or taking 5 plus years to finish a college degree is viewed as lack of drive or ambition by their parents. The parents feel they missed an opportunity to teach their children a life lesson in the past and want guidance now.
Elder Parents: I have adults in their late 20’s and mid 30’s wondering how their parents expect to cover living expenses, medical bills and rent. They are not concerned that the parents are spending their inheritance, but are worried that they will be spending their own retirement funds feeding their Mom and Dad. They are recognizing they have not learned discipline, saving techniques and budgeting behavior from their Mom and Dad. They are afraid they are heading down the same path as their parents which includes over leverage, no savings and a love of spending. They want to break that pattern and teach their children practical life lessons.
Current Active Parents and Grandparents: They recognize that society, their parents and the schools are not going to teach their children about decisions around money. They do not know where to start. Growing up, they were not exposed to patterns of behavior that promoted responsible money management. Consequences for financial decisions were, in the past, softened by their parents. Credit was easily accessible and income was increasing. Today, they are faced with reduced income and income options, having to face full-on the consequences of debt, or over-extension if their finances. They want their children and grandchildren to be financially stable and to have the option of sustainable economical growth.
The above are generalizations, the common thread being life skills they wish they had and wish they could have shared. The question is posed as “ How do I advise children on how to handle money” but the underlining request is “How do I advise myself on how to handle money and how can I do better?” It starts with the first step. Give the subject serious consideration. Over the next few articles I will focus on family money dynamics .
Metropolitan Life Insurance Company (MLIC), New York, NY 10166. Securities products and investment advisory services offered by MetLife Securities, Inc. (MSI) (member FINRA/SIPC) and a registered investment adviser. MLIC and MSI are MetLife Companies. L0212237420[exp0213][WA]
