A very good thing happened a couple of weeks ago when someone came into my office. She was not a client, but wanted to discuss how to get her twenty-something son interested and educated in financial matters. From her description, he is a hard working, goal driven young man who already seems to be doing well. He recently bought his first home, has been saving money to buy a truck which he will need in his business, and seems like he is doing all the right things with money.
But Mom thinks he needs some financial education and knowledge about how to make the right money-decisions in his stage of life. I am sure she is right. These days our children are taught sex education in grade or middle school, but they never are taught about earning, saving and investing money. Sure, they can surf the internet which is full of information for the investor or financially illiterate, but I think that all of the data available is hard to filter into something meaningful for the individual.
The key to accumulating wealth is to start saving early, and to use an advisor. As a parent and financial advisor, I know it is difficult to get someone in their twenties or younger to think about retirement or other long term financial goals, so there are other ways to get them involved. Start by using short term goals and develop plans to achieve them. If mature enough, I suggest that children investigate and maybe invest in companies that sell them the products they use every day. This can get them interested in investing on a personal level which will excite them. They may even begin to talk about investing with parents and friends. The goal as a parent/financial advisor is to get youngster started on the path of financial literacy and financial success.
By: Joe Arndt, Pres. Arndt & Associates 8124 Big Bend Blvd. St. Louis, MO 63119 314-968-5467. *Securities and investment advisory services offered through Sagepoint Financial, Inc., member FINRA/SIPC and a registered investment advisor.