Passing Down Financial Values

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By Bennett C. Whitlock III, Whitlock Wealth Management

According to a recent study from Ameriprise Financial, eight in 10 people say passing on their financial values to the next generation of their family is important to them.* That’s with good reason. Financial wisdom is a gift that can have lifelong rewards and last longer than a monetary gift. If you’re looking to
impart financial values to your children, here are nine ways to get started.

1. Teach financial awareness.

Expose your kids to real-life money management scenarios early on. Let them know that bills must be paid each month. Explain why you save for unexpected expenses as well as larger purchases. It may surprise them to learn that it costs money to borrow money. Remove the mystery of how money changes hands and
why it’s important to be careful with it. Instill confidence that they can be good earners and use their earnings in productive ways.

2. Provide guardrails.

Give your child the opportunity to learn limits, even if your own resources are plentiful. Help them identify the difference between what they want and what they need.

3. Help them save.

Encourage your kids to save at least a portion of what they earn through allowance, chores, or a part-time job. Show them how small steps can take them far. Like any habit, saving takes practice before it becomes
second nature.

4. Show as much as you tell.

Your children are watching where you invest your time and money. See that your actions align to the messages you want your kids to receive.

5. Involve kids in charitable causes.

Children learn valuable lessons by helping others who are less fortunate. Allow them to choose a charity to support. Volunteer and fundraise together. Encourage them to set aside a portion of their own money that they can donate to causes they care about.

6. Promote balance.

Help kids see that money is a means to an end, rather than an end itself. Impart the necessity of
making money, but not at the expense of everything else that is important.

7. Prepare them for inheritance.

According to the Ameriprise survey, only 19% of parents who intend to leave an inheritance are willing to share financial details with their heirs.* Yet keeping heirs in the dark may create confusion and misunderstandings. An estate plan is a great example of financial discipline and generosity. Adult children can benefit from knowing about the strategies you use to preserve and grow generational wealth. They may need guidance on what happens when money is passed on, including how to set up an inherited account and how to manage and grow a financial windfall.

8. Keep the conversation going.

Money talks don’t need to be one-sided lectures. Let your kids ask questions. Ask them about their own financial goals and dreams. Be a resource as they grow.

9. Refer them to the experts.

Expose them to books, podcasts, and people who can teach them how to be financially savvy. When they become adults, introduce them to your financial advisor. With insight into financial planning in action, they’ll be more apt to apply these principles to manage their own finances.

Bennett C. Whitlock III, CRPC®, is a Private Wealth Advisor and CEO with Whitlock Wealth Management, a private wealth advisory practice with Ameriprise Financial Services, LLC. He specializes in fee-based financial planning and asset management strategies and has been in practice for 28 years. To contact him visit whitlockwealth.com, call 877-WHITLOCK or email whitlockwealthmanagement@ampf.com. Offices are located at 12848 Harbor Dr, Ste 101, Lake Ridge, VA 22192 and in Downtown Historic Manassas at 9073 Center Street, Manassas VA 20110.
*Ameriprise Money & Family study (2022)
© 2023 Ameriprise Financial, Inc. All rights reserved.

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