Kids and Money

A few months ago, I was in a meeting with some clients, and we were covering a comprehensive analysis of their financial plan, including retirement and legacy planning. As we progressed, we got to their children, different needs, life plans, etc. And then, I was asked an absolutely great question. The wife said, “When is the best time to gift money to your children.” It was music to my ears, as this is a topic that I believe needs some discussion for many families.

When we think about gifting money to our children, many different angles should be covered. For many folks, it almost seems cultural as part of family history to not even talk about money, let alone when to distribute it. It’s like, when mom and dad pass, “the paperwork is in the drawer, and you will find out then.” While we understand that privacy is to be respected, we also know that this can be where an opportunity for not only gifting, but sharing in legacy can be revealed.

So, when is the best time to gift money to your children? Our answer is: “When you feel you can provide them the most benefit in their lives.” So often, we see people lean toward waiting to share their wealth with the next generation. And sometimes, there are very good reasons, such as possible future needs, concerns about how funds will be spent, etc. However, we believe this is a place where not only financial data comes into play but also emotional thoughts and behavior patterns. Money scarcity, family dynamics, and genetic makeup can be powerful, but so can the hands of legacy.

Imagine this: your child is looking to purchase a new home with their spouse and newborn child. Or maybe they have a dream of putting into place a charitable organization that has the ability to touch thousands of lives. How about just some funds to get through things as they seek an advanced education or career? Sharing what you have built with them just may have the ability to change the entire trajectory of their lives, instead of waiting until later in life, when they may not even need the funds anyway.

Money is among the most powerful but also private things in life. We get it, as we talk to people about it every day. We just wanted to share some perspective as it relates to the different sides of life planning and the power, we have seen it bring to those who have taken that step and expanded their legacy exponentially.

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