Wealth Management for Kids

Whether you’re six and a half or sixty-five years old, you’re never too young or too old to learn and grow.  Financial literacy should help lead to sound decision-making, which may provide a strong foundation for leading a healthy life. Below are several ideas geared for raising financially literate children.

Communicate

We believe it's never too early to start teaching children about money. We suggest involving children in financial decisions that affect them, such as budgeting for family vacations or shopping for groceries. Even young children can learn the basics of money management by playing games.  These experiences may help them understand the value of money and the importance of making informed financial decisions. 

Lead by Example

Children generally learn by observing and imitating their loved ones.  If you practice good money management habits, we believe your children are more likely to do the same. We suggest being transparent about your financial decisions and explaining why you make certain choices. Consider never spending more than you have or unnecessarily taking on debt. 

Parents that spend less than they have and demonstrate delayed gratification generally have a more positive effect on their children’s financial behavior than those that merely talk about the virtues of financial literacy.

Plan Ahead

One idea for teaching young children about money is to provide not just one piggy bank, but three containers, each with a specific purpose: one for saving, one for spending & one for sharing.  Decide what portion should be allocated to each bucket.  (A good rule of thumb is to save a minimum of 10%.)  Every time children receive a cash gift or weekly allowance payment, they can practice healthy financial habits such as learning to save and give. 

Ensuing conversations should explore valuable lessons of purpose, generosity, patience, discipline, gratitude, hard work and goal setting.

Consider motivating your children to save money by setting savings goals & celebrating when they achieve them and encourage your little ones to think of and empathize with others by evaluating how to best use funds in the giving bucket.  These opportunities should help make them mindful of their spending habits.

Lifelong Learning

At Patron Partners we are known for bringing our clients’ wealth to life with peace and purpose.  Our goal is for our clients to have peace in their financial plans, regardless of economic uncertainties.  We help our clients allocate their resources into three buckets using the 3-L strategy: Liquidity, Longevity & Legacy.  We challenge our clients to see themselves as stewards of their resources.  We function as a guide, encouraging our clients to reflect upon their values and set goals to purposefully support the people they care about and the causes they believe in.  When peace & purpose are aligned, we believe people are able to enjoy a life of significance and sense that their best days are ahead of them.