What to consider if you want to leave money to your children
Raising children is an expensive business.
In more fortunate families, parents will still be able to leave money and assets to their offspring when they die.
"I think it's every parent's dream to be able to give their kids a start in life as young adults if they can afford it" says personal financial adviser Warren Ingram.
Bruce Whitfield gets tips on how best to do this from the executive director of Galileo Capital.
Warren highlights three important factors:
- Plan far ahead (Who will be their guardians, should you launch a trust?)
- Educate your children about money (You can’t avoid the topic and suddenly drop millions on them)
- Communicate with adult children (Is the family home or farm important to them?)
A good starting point for the conversation about money with your kids is tax-free savings.
Every month, or every six months, talk about how that tax-free account is working... what rising and falling markets mean...Warren Ingram, Personal financial adviser and executive director - Galileo Capital
You're doing your children a major disservice if you don't prepare them for the world of money.Warren Ingram, Personal financial adviser and executive director - Galileo Capital
Even if you're having financial difficulties it doesn't mean you have to burden your children, but talking it through... the trade-offs and sacrifices we have to make... it's a great education tool.Warren Ingram, Personal financial adviser and executive director - Galileo Capital
By the end of high school, your children can start accompanying you to meetings with your financial adviser Ingram says.
Listen to Ingram's tips in detail in the audio below:
Source : https://previews.123rf.com/images/gioiak2/gioiak21910/gioiak2191000041/131677323-savings-for-children-concept-piggy-bank-big-and-small-pink-color-isolated-against-white-background-3.jpg