Bull & Bear Essentials

category: kids

Presents for Children? What about the Gift of Investing.

The Wall Street Journal today discusses giving children the gift of investing.

This holiday season, your child wants a few new video games. Instead of getting him/her the games, you could purchase only one game plus a couple shares of the stock (which created the game). This way, you and your child can follow the price movements though different game releases and market cycles. This will educate your children (and yourself) in a different way.

For older children and teens, think about setting up a Roth IRA or an investment account for them if they don’t already have one. Read: What is a Roth IRA?

In addition, you can also take this time to show them how you have been saving for their education and bring them into the process. Read: Saving for Education: The Options.

There are ways to make this fun, sort of. Read WSJ’s: How to Give Children the Gift of Investing.

Tags: gift of investing, how to give children the gift of investing, investing and children, saving for education: the options, what is a roth ira
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Children: A Financial Guide Through the Years

These little nuggets of high-pitched laughter and big bear hugs with skinny arms are the things in life you will work hardest to protect.

One constant worry parents have centers around the emotional and financial well being of their children. While emotional well-being is hard to advise on, financial well-being is easier. Allow us to take the weight off your shoulders. There are a few key things you need to do at various stages of life and your children will be set.

Early Stages of Life (Ages 0-3)

Theme: Protection Against the Unthinkable.

What would your child do if something happened to you and or your significant other? Things you must have at this stage: Legal guardians in place, an updated Will (read: Wills: What’s the Story?, an insurance policy named in your child or survivor’s behalf (read: Life Insurance: The Basics), Power of Attorney and Trustees for your children’s assets (read: Power of Attorney)

Childhood: (Ages 3-10)

Theme: Planning for Education.

Your child is Einstein with much better hair. But education is expensive. Planning early will be key.Know your options (read: Saving for Education: The Options).

Theme: Estate Planning.

If you have made money (even modest amounts) and want to begin gifting that to your child through your lifetime gifts, annual gifts or trusts- do so now (read: What is a Trust?)

Tweens and Early Adulthood (Ages 10-21)

Theme: Understanding the Value of Money.

This is the age they begin spending. And if they travel abroad, they will probably spend a lot more than you thought. Teach the value of money.

Here is an article on website which teach your children and teen about money: Inspire Money Smart Kids with These Online Tools.

Theme: Establishing Credit for Your Child.

Help them establish credit. This will save you from having to take out the mortgage on their first home (read: Credit Cards and College Kids).

Adulthood (Ages 21- till they start taking care of you!)

Theme: Trusts:

For their ongoing care and protection, make sure all trusts are set up properly. This is important pre-marriage.

Theme: Marriage:

Make sure they understand the consequences of marriage and divorce (read: Marriage: 11 Questions Before ‘I Do’, Combining Your Finances After ‘I Do’)

Their Entire Life