As an advisor, I often receive questions from my clients who want to help pass along a tradition of giving. If you’re looking to impart financial values to your children, here are some ideas on how you can open their eyes to the gift of giving.
Talk about why you give. Help your child understand the importance of giving to others in need. Talk early and often about why sharing your knowledge, abilities, possessions or wealth matters to you. Instilling a culture of giving in your family is a process, not a one-time event. Remember to embrace the joy of giving, doing your best not to make giving back feel like a homework assignment or chore.
Find causes your child cares about. Your child is more likely to develop a habit of giving back when he or she is passionate about the cause. Start by brainstorming the possibilities of who your child can help, such as their classmates, animals, the environment or individuals experiencing hunger – and encourage them to think about ways they can be of assistance Do they love to bake or meet new people? Do they enjoy music or caring for animals? Next, help your child choose one or two charities whose missions reflect their interests. Involve older children in the search and vetting process, teaching them how to have confidence that a charity is doing its best to help the cause.
Give and volunteer together. When your children see you volunteering your time, talent and treasure, they see your values at work. Find ways to involve your children in your own giving. With the holiday season in full swing, consider volunteering or purchasing gifts for another family together. Your children will learn first-hand how rewarding giving to others can feel, and you’ll have the bonus of creating family memories to cherish, too.
Encourage disciplined saving. Kids need to learn how to manage their own money in order to become responsible givers as they grow older. When your children get an allowance, or otherwise receive money, they can practice making responsible choices. Introduce the idea of “save, share and spend” — setting aside a portion of their money for the future, a portion to help others and a portion for fun spending.
Create a family foundation. Consider establishing a foundation to fund causes you care about. Formalizing your giving in this way can create ongoing opportunities for you and your children to make a lasting impact on the community. Talk to your financial advisor for advice regarding establishing a foundation and leaving a legacy of service to the next generation.
Carrie A. McPherson, CRPS®, CDFA®, ChSNC® is a Financial Advisor and Certified Divorce Financial Analyst with BeaconPoint Wealth Advisors, a financial advisory practice of Ameriprise Financial Services, Inc. in Providence, RI. She specializes in fee based financial planning and asset management strategies and has been in practice for 15 years. Please contact her at https://www.ameripriseadvisors.com/team/beacon-point-wealth-advisors or (401)824-2557, 1 Citizens Plaza Ste 610 Providence, RI 02903.
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