Helping children and grandchildren get off to a great financial start

1. HELPING CHILDREN
(& GRANDCHILDREN) GET OFF
TO A GREAT FINANCIAL START
© 2018 LWI Financial Inc. LWI Financial Inc. (“Loring Ward”) is an investment adviser registered with the Securities and Exchange Commission. Securities transactions may be offered through
Loring Ward Securities Inc., member FINRA/SIPC B 12-031 (Exp 7/14)

2. Your Challenges Today
Concerns about financial future
Providing the best for children so they can enjoy
everything life has to offer
Educating the next generation to manage family
wealth effectively

3. The Kids are All Right?
Sources: “Insight on Wealth and Worth Annual Study,” U.S. Trust, 2012; “Money Across Generations II Study,” Ameriprise Financial, 2012; 2011 National Endowment for Financial Education Study.
Of affluent baby boomers…
50% want to leave money to their kids
33% said they would rather leave it to charity
32% are confident their children will be ready for a financial legacy
47% worry their children do not understand what it takes financially to prepare for retirement
35% concerned their children have not learned fiscal responsibility
59% of parents provide financial support to adult children

4. Key Considerations
Importance of starting early in childhood (around age 3 or 4)
Hands-on, daily practice of basic skills
Simple messages when questions or other learning situations arise

6. Simple Steps
Financial results come from the small decisions
we make and actions we take each day. Parents
need to help children prioritize and make good
choices as well as learn from mistakes
You can do it!

7. You Are the Most Influential Financial Teacher
Your Child Will Ever Have

8. The POWER of Three
No matter how old your children, there are a
few key concepts for them to learn over time:
1. Differences between needs and wants
2. How to prioritize and make good choices
3. Understanding the consequences of
these choices

9. How to Teach
Divide all income into categories:
Give, Invest, Save, Spend (GISS)
Use cash
Tell stories
Look for everyday teaching
Take the time to explain things
Help children learn valuable lessons from mistakes
Encourage creative “entrepreneurial” thinking

10. GISS Method of Money Management
Give Invest Save Spend

11. Why Do It?
Dividing money into “Give, Invest, Save and Spend” categories provides:
Repetition and relevancy
Memory skills
Critical thinking and decision making
Profound and meaningful conversations
Practice in goal setting
Pride and responsibility

12. Allowances
This “practice time” teaches children consequences of choices and
personal responsibility. Also allows them to learn the value of things.
Decision Making and Responsibility
Tie to Chores or Not?
A Simple Solution — The “Mini” Allowance
How Much and When?
Increases

13. Mistakes to Avoid
Talking negatively about money… or not at all
Thinking you must be a math or investment expert
Teaching children only to spend
Overindulging children with “stuff”
Getting upset at a child’s decision and not identifying lesson within the “mistake”
Giving stock “yes” or “no” answers to save time
Going to the mall as a regular pastime

14. The Key to Effective
Money Lessons
Consistency
Personal relevancy
Age-appropriate
responsibility
Hands-on practice

15. Next Steps
Commit to being your child’s #1 financial teacher
Teach your children financial skills every day
Tell stories
Share experiences
Use cash to help them practice numeracy skills
Help them set up a GISS banking system

16. SO HAVE
FUN WITH IT!
Your kids have the capability
to learn these skills
and you have the capability
to teach them…

17. QUESTIONS

18. Capital Associates
6901 Rockledge Drive, Suite 500
Bethesda, Maryland 20817
(301) 581.4108
info@capitalassoc.net
Rob Ugiansky
robert@capitalassoc.net
(800) 601.5281
Mitchell Katz
mkatz@capitalassoc.net
(800) 601.5281
http://www.capitalassoc.net
The principals of Capital Associates Wealth Management, as individual financial advisers with Eagle Strategies LLC, a Registered Investment Adviser, offer their clients the
services of Loring Ward, third party money manager available on Eagle Strategies Investment Management platform. Capital Associates Wealth Management, Eagle
Strategies and Loring Ward are independently owned and operated.
LWI Financial Inc. (“Loring Ward”) is an investment adviser registered with the Securities and Exchange Commission. Securities transactions are offered through its
affiliate, Loring Ward Securities Inc., member FINRA/SIPC.
B 16-020 (4/18)