Part V: Teaching your children to be financially wise
5. Setting expectations when it comes to helping your children financially.
Laying all the cards on the table when it comes to what you will and will not help your children with financially alleviates misconceptions and misguided expectations. The amount you will have to set aside for each of the needs depends on your financial situation. I suggest making a list starting with whatever area you feel is the most important for their future. The following is an example.
1. College education: I will pay for 1, 2, 3, or all 4 years; tuition, books, room and board, but you will need to work and provide your own spending money.
2. Graduate studies: You will need to get student loans to cover the cost.
3. You will receive $5000 upon graduation of college to get you started in life.
4. Wedding: I will contribute $5000 towards/or pay for your wedding celebration.
5. Down payment on first home: $10,000 has been placed in a timed account.
6. I will purchase your first car, but you will need to pay your own insurance coverage.
The above examples cover some of the mile stones in life that I find cause a majority of the misguided expectations from children. When a child dreams of going to college or having a $30,000 wedding only to find out shortly before the event that their parents are not able or willing to pay, can be devastating to your relationship with them. Letting them know where you stand in advance also gives them the opportunity to work out a strategy to fulfill their dreams by other means.
Watch for part VI coming soon
Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622
Laying all the cards on the table when it comes to what you will and will not help your children with financially alleviates misconceptions and misguided expectations. The amount you will have to set aside for each of the needs depends on your financial situation. I suggest making a list starting with whatever area you feel is the most important for their future. The following is an example.
1. College education: I will pay for 1, 2, 3, or all 4 years; tuition, books, room and board, but you will need to work and provide your own spending money.
2. Graduate studies: You will need to get student loans to cover the cost.
3. You will receive $5000 upon graduation of college to get you started in life.
4. Wedding: I will contribute $5000 towards/or pay for your wedding celebration.
5. Down payment on first home: $10,000 has been placed in a timed account.
6. I will purchase your first car, but you will need to pay your own insurance coverage.
The above examples cover some of the mile stones in life that I find cause a majority of the misguided expectations from children. When a child dreams of going to college or having a $30,000 wedding only to find out shortly before the event that their parents are not able or willing to pay, can be devastating to your relationship with them. Letting them know where you stand in advance also gives them the opportunity to work out a strategy to fulfill their dreams by other means.
Watch for part VI coming soon
Denise Wing, C.E.O.
Certified Mortgage Lender
Academy National Mortgage Corporation
303-987-0622
posted by Academy National Mortgage at 10:37 AM
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