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Three Steps to Teach Your Children Financial Responsibility

T.S. Eliot may have thought, “April is the cruelest month,” but here at Wealth Legacy Institute we’re excited to celebrate Financial Literacy Awareness Month!

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As spring is upon us, it is a fantastic time to organize your financial life and understand your priorities around personal finance and retirement planning.

This is also the perfect opportunity to introduce or reintroduce personal finance strategies to your children or grandchildren.  Make April your annual financial check-in with your family! Here are three steps to help your family members become financially literate and independent.

1. Discuss your Family Money Vision:

Have a family conversation around the following questions:

1. What was or is the attitude of your parents toward money and how did/does it affect you?
2. What was said or is said directly to you about your personal relationship toward money when you were growing up?
3. What do you learn about money from watching other family members, friends, and peers?
4. What does money mean to you? What do you see as its greatest value?  Its greatest danger?

These questions will help you discover and explore your family money vision

2. Complete a Family Money Values Chart:

Once the family vision has been articulated, the next step is to establish values that your children can use as a financial lighthouse.

Have parents and children write their values around the five options below.

Some value descriptions to help trigger your thinking: Independence, Generosity, Power, Love, Family, Social Justice, Faith, and Status

1. Earning
2. Spending
3. Investing
4. Saving
5. Philanthropy

3. Utilize Community Literacy Resources

Getting involved with a community event this month is an excellent way to solidify thoughts and strategies around money.

Junior Achievement and Young Americans: Center for Financial Education are two non-profits you can utilize for additional resources. They both have local events on a monthly basis around financial literacy and can help you tailor a financial education that suits your family’s needs.

If you live in Denver, the Colorado Financial Planning Association  is hosting a Denver Financial Planning Day on May 10, 2014 at Mile Hi Church.  Class topics will include budgeting, retirement, and investing.

To sign up for this program or to find programs in your area, visit www.moneysmartweek.org.

How do you teach your family about money? What successes and struggles have you had?

Ready to take the next step?

Let’s talk!

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