It is nice to give wealth to grandchildren. But an even better gift can be to teach them how to multiply and manage their wealth the rest of their lives.
Youngsters today are more financially savvy than any prior generation. They own investments, have such high discretionary income that retailers pitch to youngsters, and even financial services firms are catering to the younger generation. It is easier than ever to get your grandchild or child started with an investment program.
Despite this attention, money, and information your grandchildren know just enough to be dangerous to their wealth. That’s where you come in. You can help them become better, shrewder financial managers. An additional benefit is that the grandchildren will learn to be responsible for something. Kids tend to like some responsibility, and that rubs off in other areas.
Here are some steps to consider:
Your grandchild needs to save and invest for a lifetime. You can get them off to a good start with a few easy steps and some early lessons on how wealth works. With any luck, the grandchild won’t forget the lessons.