Investing is a habit that needs to be taught from a very young age and a financial advisor should try and involve the children in the family in financial planning, while creating a multi-generational business. Here are some ways to get the conversation with kids started:
Create a regular multi-generational conversation
Advisors can start the relationship building process with the entire family from the early stage of client acquisition, which can then help to build a relationship with children in the family too. Further, the advisor can arrange an annual meeting of parents along with their kids to tell them the importance of saving and investing to create wealth through various games and examples. That would help him or her understand from the early age the basics of financial planning.
Education is important and is expensive with changing times, an IFA can plan education across generations
When a child is born in the family, you can help your client open a college savings account for the child – and remind them to contribute to it each year on birthdays or other special occasions. This way you gain their trust and become a part of the family. It demonstrates your concern for the clients’ ongoing financial planning process – and builds trust in your relationship.
Advise on allowances
Don’t limit your financial planning to retirement withdrawals for the oldest generation. The kids and grandchildren need some money on a regular basis, too.
Help kids invest their own money, from childhood through teen years
Small lessons with interesting anecdotes about how children can save and buy themselves toys they want even if they are expensive. This habit can help kids save right from their childhood and later advisors can tell them about how some portion of pocket money can be saved and invested for their future.
Don’t underestimate teenagers’ interest in money
If a child is invited to be involved in financial planning, he or she gets a feeling of inclusiveness and a sense of responsibility. One can experience child’s interest in the money planning at a very young which can also lead to increasing IFAs business.
As the family’s trusted financial advisor, you can extend your relationship by helping parents and grandparents take on the challenge of providing information, advice, structure, and perspective about the topic of money and finances.
