Parents generally want the best for their children. Part of giving your children the best that you can, is setting them up for the best financial future you can give them. Money is often seen as a taboo subject to not be spoken about. But shielding your children from learning about finances or making financial decisions themselves can be harmful for their futures.

If you want to protect your children’s financial futures it is best to start as soon as it makes sense. That could be right now if you have waited too long, once they start school, or whenever it makes sense for you and your family. 

Here are some tips for protecting your children and family’s financial future:

Talk to you kids about money.

This is often the first step in financial literacy. If kids don’t know what money is, or the importance of it until they need to start using it, they most likely won’t have the healthiest relationship with it. Keep it simple and let them know it isn’t taboo.

Teach your children the financial basics.

What you will teach will depend on the child’s age, but it is important to give them good basics they can build on as they get older. For younger children, start with simple money math. For kids slightly older, use allowance to show the difference between spending and saving. And for teens, show them how to budget and save for the future with their first job.

Create a will.

Creating a will in case something happens to you prematurely is always a little uneasy feeling. But if you have assets and prefer for them to go to your children, it is important to create a will while you are healthy enough to do so. This also can eliminate any confusion from your children once you pass, and set them up for success.

Get life insurance.

Getting life insurance for yourself and your spouse can insure that your children are taken care of if something happens. While you hopefully won’t need it while your children are in your care, it can be nice to know they will be taken care of when you are gone.

Save for their future.

If you are able to, put aside money for a college fund for your kids. If this isn’t an option, make sure to teach them the importance of saving, and help them apply for loans for college or trade school. Any help or support to set them up for success in the future will protect their financial future as well. 

Protecting your children’s financial future starts with you. But ultimately, it ends with them learning from your financial lessons. Talk with a financial advisor or take a few lessons from our blog to help!