Consider the impact that your financial decisions have on your children
Making financial decisions can be a very challenging decision - but what many people don’t consider is the impact that poor financial planning has on the next generation. Bruce Cameron, in his recent article on Finweek: ‘Children pay for their parents’ bad financial decisions,’ explained exactly how much our financial behaviour can affect our children.In the article, Bruce states that “Children, who grow up with parents who put no limit of debt, spend everything they have plus more, leaving unpaid bills and never budget are simply likely to repeat the process…It’s a cycle that must be stopped,” he says.
We couldn’t agree more.
In the same way that poor financial habits can hinder our children in the future, good financial habits can set them up for a life if financial success. This can be in the form of teaching them how to be disciplined savers and helping them understand concepts like budgeting and compounding - or helping them to establish a financial foundation for their future by setting them up with a long-term investment, like a tax-free investment. Framing your financial decisions by considering how they might affect your children of the future generation can be a powerful tool to committing to an investments plan and staying on track in the long-term. What is the greatest financial gift that you would like to give your children – and how do you plan to get there?
We asked this question to a few of our investors – watch this video to see the responses.