Parents often set an example for their children in all aspects of life including their financial planning skills. In a column for the Atlanta Post, Michelle Thornhill, a representative from Wells Fargo, has provided some tips that may help parents set the standard for positive financial health for their children.
When children are born, Wells Fargo recommends immediately updating any health and life insurance policies to include the children. Sometimes, if the beneficiary listed on a life insurance policy is not updated from someone else, such as an estranged spouse, the death benefit may go to that person rather than the child it may be intended for.
Another recommendation is teaching children about saving, budgeting and setting financial goals from a young age. Having those concepts ingrained early may help children be more financially successful in the future. When teenagers get older. they may also need to learn more about credit and educational finance practices, including applying for financial aid, student loans and scholarships.
Some experts also recommended getting individual life insurance policies for children. In addition to being useful in the event of a tragedy, certain life insurance policies may be more of an investment accompanied by a cash value. The funds may be able to be drawn from by children for important purposes such as financing their education.