This issue is “for the kids” … a line you may recall from the 1990 Home Alone movie that my husband regularly quotes at the grocery store every time he reaches for a bag of candy…
I didn’t write to you last week because I spent the afternoon with some money-smart kids running financial literacy sessions for an excited crowd of grade 4, 5, 6 students followed by grade 7s and then 8s.
Much to my surprise, the kids were just as excited about money as I was and asked questions that blew me away. While I’d chalk the day up as a success, I know it only put a small dent in a conversation that needs to happening on a regular basis.
Having these conversation early not only helps to shape and encourage financial independence and confidence, but it can also help to close the gap between intention and action when it comes to legacy planning.
Wealth Transfer, a new report released earlier this week from RBC Wealth Management and Scorpio Partnership Ltd, found that only 22% of high net worth Canadians have an inheritance plan in place, yet the majority of them plan to pass on their entire wealth only upon death. You would think that a segment with the most to lose would be the most prepared…
Unfortunately, conversations about wealth planning are never easy, no matter how many assets one has. Our report also found that even when families did have these conversations, they were limited: almost three-quarters of high net worth inheritors know the monetary value of what they will receive, yet only one-third know how their benefactors want them to use that wealth.
While seeking professional help is a good place to start, our research has found that the earlier children are educated on financial matters, especially in relation to the transfer of wealth, the more confident they will be at making sound financial decisions when they are faced with the responsibility of receiving an inheritance.
I hope this motivates you to sit down with your family and discuss your financial legacy this weekend – there is no time like the present. The act of passing on your wealth is much more than dollar figures; it’s about ensuring that your wealth endures to benefit future generations.
Financial literacy is a passion of mine – no matter how simple or complex the conversation, I’m happy to get it started. Click here for a copy for the Wealth Report and if you’d like a copy of the Financial Literacy Kit built just “for the kids”, please ask me anytime.
With so much going on and information coming at us from every angle, it's sometimes hard to keep your finger on the pulse of what's happening. In an effort to keep you in-the-know and provide you with some conversation nuggets for the holiday weekend, I've compiled the following hit list to fill your conversation pipeline.
Now you are in-the-know with Word on the Street.
Enjoy the weekend.
Investment & Wealth Advisor
Chaaban Wealth Management Group