Perspective

Teaching Mindful Money Management – The Key to Your Wealth Legacy

Let’s talk money. At SignatureFD, we are deeply aware of the fact that wealth isn’t just money, it’s having a life that is fulfilled, worthwhile, and overflowing with whatever brings you joy.

However, we also know that money is an important component of wealth, and that the conversation around money – no matter how uncomfortable – must be had within families. We recently interviewed Eric Rosenberg on SignatureFD’s podcast, Net Worthwhile. Eric is a writer, speaker, coach, and founder of Personal Profitability, a resource and education platform that helps people save time, money, and stress when dealing with personal finances.

He shares: “If parents don’t talk about this stuff [money matters] with their kids, they’re setting their kids up to really struggle.”

Whether kids come from a family where they know they’ll need to work and provide a living for themselves – or if they have a family legacy – it’s important that they understand how to manage money, leverage it, and make responsible decisions around debt and spending to preserve it. That’s why Eric started having age-appropriate money conversations with his daughter at just two years old.

For many, money conversations bring up feelings of awkwardness and discomfort. Some of us have been taught that money conversations are impolite, private, and inappropriate, and, in some settings, they are. But, if you avoid money management conversations with your children, you miss out on a big opportunity to have a positive impact on their future and their ability to make smart and mindful decisions for themselves down the road.

Whether your children will manage generational wealth, create their own over time, or suddenly come into a large amount of money, they are bound to have big questions, big challenges, and make big decisions that will influence the very foundation of their livelihood.

And, this education doesn’t come from school.

So, how can you teach your children mindful money management? Start by asking yourself the questions below:

  • How do I feel about money and its energy, and how have I instilled those same sentiments in my child?
  • How can I bring money into the conversation with my child in an age-appropriate and positive way? Is it time to learn budgeting, credit card best-practices, or just simple banking?
  • What lessons have I learned about money the hard way, and how can I teach my child what I’ve learned?
  • How can I set the example for my child in a transparent, honest, and open way?

Remember, most, if not all, of your child’s financial management education will come from you as their parent. Leading by example, sharing lessons, and opening the conversation is a gift and legacy that can empower them to pursue their own Net Worthwhile as savvy, confident adults.

To hear Eric’s full podcast, click here. If you want to talk about money management and wealth creation with a professional, reach out.