Advising Your Children or Grandchildren About Income and Money

This article from Ben Carlson wills ave you a lot of thinking time when it comes to helping young people achieve financial balance in their lives.

One’s first earnings are easily consumed, and credit cards add to the problem. The essence of financial success is to balance today’s income with tomorrow’s needs. If you over-borrow or under-provide for the future, you will endure hardship when you cannot add to your income by working. If you over-save, you cannot enjoy the present to the fullest. Taking your children to Disney World at 27 instead of 7 is futile.

The article deals with five conditions to consider:

“There are like 5 different layers of Ben content here — 1) retirement savings, 2) behavioural finance, 3) spending money, 4)striking the right balance between happiness now and comfort in the future and 5) luxury vehicles.”

Include the strategic vision before the details. 

It addresses building assets in layers and along a timeline:

  • Assets you use. Education, car, house, furniture, and the like. You acquire most of these in the first ten years of a career. That adds the issue of how debt affects you.
  • Flexibility money. Safety fund or, in the beginning, a line of credit. Smooths out the fact that not every month will look like every other month.
  • Money invested to supply minimum needed future income. It could be your own in a retirement account or in an employer pension. Young people should be willing to notice but not count on government programs. What will be true forty years from now is an unpredictable variable.
  • Growth investments. These are intended to provide security and the ability to increase their lifestyle when the investments mature. It could be rental real estate, developable land, stock market investments, or maybe a business.
  • Aesthetic investments. Just because they give me pleasure. These could be art, antiques, jewelry, or a hundred other options. Many people add experiences to the list. When you are young, this is where a Porsche fits.

If they think about it, most people catch on to the idea of balancing money in time. The technique follows more easily then.

You can see the article here. Should Young People Save Less and Spend More.

I build strategic, fact-based estate and income plans. The plans identify alternate and effective ways to achieve spending and estate distribution goals.

Be in touch at 705-927-4770 or by email at

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