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Fathers: Discuss and Model Good Financial Planning Habits

CB009188In an article about the financial influence of fathers, Deseret News makes a case for connecting allowance to chores, spotlights a father asking his son for financial planning advice, emphasizes the importance of discussing and modeling good financial habits.

Connecting allowance to chores: Experts will probably continue to debate how parents should hand out allowance (except for one expert who likens giving an allowance to cruelty). When his 6-year-old was $7 short of what he needed to buy a toy, Tennessee father Chris Hogan (who works for a finance expert) decided to give his son the chance to earn the money rather than just giving him the money. Hogan proudly states that two years later, his son still has that toy.

Hogan thinks it is helpful if fathers are open about challenges at work and “…encourages fathers to talk about their jobs, for instance. “Help them understand how it fits into society and how it helps people,” he says. “Kids can understand that, and it helps them be proud of their dad.”

Alan Wolan, author of Moneyology: a Kid’s Guide to Money, says that he found money to be mysterious because his father didn’t think it was right to talk to children about money. Wolan is taking another approach with his children: he gave his son a bank divided into sections for saving, spending, and investing; he help his son find a way to earn money by selling things at school; he opened a custodial investment account for his son and let his son handle the investment decisions; and asked for his son’s opinion as he considered refinancing the mortgage on an apartment building he owns.

Sometimes it is hard to consider being open with children about money if we are not open with ourselves. A Fee-Only financial advisor can help you with financial planning and investments so you will feel more confident in being a role model for your children.