As parents, we want nothing but the best for our kids. We have all the greatest interest for them. After all, we cannot be with them all the time. Soon enough, they will begin living their own lives and explore the world on their own. Change is bound to happen one way or another. It is quite inevitable. And this includes life in itself.
Yet here comes the curse of time. Time flies really fast and it is evolving. We do not live in a vacuum where all our needs will remain constant and static over time. We need to see everything in a different light. We need to equip ourselves and our kids for the future. We need to make sure that everything is all laid out and well-planned for them. But how do we do that?
We can’t do anything to stop time. What is bound to happen will eventually happen. This includes old age and even death. Someday, we will leave our children to fend for themselves. And when that day comes, we do not want to leave our kids penniless, right? As parents, we also want to see them settled and secured. Bottom line is as early as now we need to safeguard the future of our kids. We do not know what will happen next. No one has the ability to predict what will come tomorrow. The least that we can do is to plan ahead of time.
It is fundamental that we teach our children to plan for their future themselves. Let them plot their own retirement strategy. Yes, you heard it right. The magic word is actually RETIREMENT. I know this is slowly becoming morbid, but the truth of the matter is that this is the real deal. This is now. And this is the problem that we need to address. We need to break the so-called stigma about retirement. And we must begin as early as now with our very own kids.
Quick answer to this time dilemma: teach your kids to save for retirement and make them knowledgeable with tax planning.
One of the most crucial or valuable lessons kids need to learn is tax planning. A lot of Americans are dealing with the IRS every single day because they knew little about the consequences of having back taxes. Let our children know as early as possible that they have a responsibility and that is to pay their taxes. Our kids need to know about IRS tax liens, levy and others as a result of not paying their taxes on time. We can teach them those things in layman’s term so they would understand.
Another thing that you should prepare your kids for is retirement planning.
This may sound ludicrous to some, but the reality of it all is that we only tend to think about our retirement when it is already way too late. We only consider this when we are already feeling weak because of old age. We only thought of it when we grow jaded and exhausted because of work. We see retirement as our final destination. The end of it all. But guess what, it should not be thought of it this way. Retirement should connote stability.
A great retirement scenario is when we become established and we are able to live comfortably without the worries of tomorrow.. Retirement itself is our future. We do not want to end up going back from scratch. And it is in our farthest ambition to see our children succeed and the future generation experience to skip the hardships we had battled before. You need to change your mindset about retirement.
As parents, we have to inculcate within the minds of our kids that we need to take advantage of the very limited time that we have. To plan for their retirement is to build themselves their very own wealth even at an early age. They need not wait for their college graduation for them to achieve full financial freedom. To retire after all is to become financially independent. Kids nowadays should learn the value of investing. As parents, we could offer them guidance by introducing to them the simple concepts and let them build it on their own over time.
But the real question is: how do we start preparing our kids for retirement?
Let us teach our children the value of hard-earned money. We can do so by letting them know the connection between money and work. Nothing in this world is free after all. Let your children experience the sense of fulfilment brought about by earning their own money. Young kids can earn money alongside an abundance of praise by doing simple jobs like picking up their toys. Older kids can also be rewarded if they will effectively perform their regular chores. The concept is quite simple, really. Work and get paid.
Since you have already introduced to them the value of hard-earned money, the next step would be teaching them how to budget. Always remember three things when it comes to budgeting: give, save and spend. They have to figure out which part of their earning should they let go to cover certain expenses, which should they save and what part will they spend. It can be rewarding for them to set a saving goal and regularly put aside money to reach it. Seeing your savings grows can definitely give a sense of empowerment to our kids. Not to mention that this could also serve as a viable capital for their future investment.
Be a good example to your kids. You are your children’s greatest influence after all. You should let them see that you yourself are handling your finances smartly. Practice what you preach. Live on a budget, avoid debt, and invest. These should be your financial goals. And make sure that you involve them in the process. This includes teaching your children to prioritize as well. If you impart to them the essence of setting their eye on a certain goal, do not let anything to get in the way most especially their wants. Those are just mere distractions. Educate them the value of sacrifice. Sometimes, we have to let go of certain whims to reach our goal.
It only takes a strong saving habit and a solid monetary management, and your kid will definitely in his own way towards financial independence. Now is the perfect time to take the plunge and start to invest. We should guide our children on how to craft an effective investing plan though. The younger they start investing, the bigger the money they can accumulate over their lifetime. This means that they could retire even at an early age. They can still have and enjoy all the best things life has to offer without thinking about the uncertainty of the future. And this is because they started planning for their retirement at an early age.
Make a meaningful change in your sons and daughters lives. Educate them to plan for their retirement. Remember, if you fail to plan you plan to fail. Now is the perfect time. Let us help prepare a better future for our kids.