Passing the Baton to the Next Generation
May 15, 2018
By Tom Limoges • Trust Investment Officer
A few weeks ago, I had the opportunity to attend my daughter’s first ever track meet. Prior to the start of the events, I noticed many athletes warming up, stretching, and talking with their teammates. I also noticed several groups of individuals practicing a task that seemed routine: the baton pass for the relay races. Why were they spending this time practicing such a mundane action? If not done with extreme care and precision, an error in passing the baton to the next runner could cost a team the race. The same holds true when passing the finance baton on to your children.
On your Mark ...
A recent study by T. Rowe Price indicated that parents have a difficult time talking to their children about money. Nearly 25% of the respondents indicated that they completely avoided the subject of money with their kids. This is unfortunate! There are no false starts when teaching your children about money and personal finance, and modeling responsible behavior with your finances is one of the best ways do so. Additionally, paying commission for completing chores and showing your young children how to budget those earnings (spend, save, and donate categories) is a simple way to develop responsible habits.
Get Set ...
As children grow into adults, many parents often drop the baton in passing on their financial knowledge and experience. One of Millennials new favorite words is “Adulting,” which means to behave like an adult. Forms of financial adulting include debt management, buying a first home, and saving for retirement. These are all areas that many parents have experienced and can provide valuable insight to their children. Starting these conversations can be the hardest part for many parents; balancing your desire to help without becoming overbearing is as important as staying in your track lane. Every approach to this conversation will be different depending on the individual personalities involved. Security National Bank provides educational opportunities in these areas through our M.O.M. (Manager of Money) University. Our next “Lunch and Learn” is May 17th with the topic “Mortgage Loans: From A to Z”.
If you have built the foundation with your children and had conversations with your young adults about responsible financial management, then the step of legacy planning should be the final turn around the track. Introductions to your SNB wealth management advisor and other key members of your team can help with passing your legacy baton to the next generation. Not only will these actions leave you in a winning position financially, but you’ll be able to pass the baton on to the next generation and set them up for success in their own race.