Our Commend from J. David Lewis - We recommend this short video from The New York Times to parents and grandparents of kids who still watch Sesame Street. You can help get them started with the basics. And, it may save you some of those uncomfortable “debates” in stores, when they want something impractical.
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. 52842
Our Comment by J. David Lewis –There is more to money than money®.And, this story is yet another eloquent example of what our slogan means. More than this, it is a short story (4.5 minutes) that a young person can understand. It can help children have another of the many ways to think about money. Find a child and share the podcast together. Help them understand that money is really interesting.
The Island Of Stone Money by Jacob Goldstein and David Kestenbaum
“Theres a tiny island called Yap out in the Pacific Ocean. Economists love it because it helps answer this really basic question: What is money?
Theres no gold or silver on Yap. But hundreds of years ago, explorers from Yap found limestone deposits on an island hundreds of miles away. And they carved this limestone into huge stone discs, which they brought back across the sea on their small bamboo boats.
Its unclear if these stones started as money. But at some point the people on Yap realized….”
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. 50928
Every year we see professional publications and colleagues asking about financial Christmas gifts. Consumer publications suggest things like paying for an adult child to visit a financial planner or 529 Educational Savings Plan contributions for grandchildren. The ideas seem to be the same each year.
At Thanksgiving, two of our grandchildren visited our new office one evening. They were curious about what we do here and each of our roles. It was a perfect opportunity to learn more about their Christmas presents that started three years ago – monthly contributions to investment accounts. I wrote Grandchildren and 401(k) Contributions in June 2009 and Revisiting Grandchildren & 401(k) Contributions with Positive Dollars of Return in September of that year. Those articles were to encourage people who were concerned about the recent economic stresses.
While people are thinking about Christmas 2010, I want to reinforce the educational and relationship value of financial gifts for children. There is more to money than money®. Kids learn best when their curiosity initiates the conversation. It does not work nearly as well when an adult initiates “money talk.” Parents generally have many more opportunities than grandparents. At our office, I got my chance. They watched us print their personal reports to hold. Very easily, they could comprehend how much the accounts have grown above my contributions. More important, they can relate the amount to something “cool” in their lives. At ages 8 and 6, they are old enough to understand that investments produce growth without work.
This is exciting. Their understanding is worth far more than the dollars contributed or amounts they will grow – even the tax benefits some forms of gifts offer. It is not about transferring wealth to their names. The relationship that helps them understand, in small steps, is the key. Christmas fits well for growing relationships. This gift is about teaching them something that should find its way into the mature adult they will eventually become. If we help them achieve that understanding, they will take pride in their own ability to build and enjoy the wealth they are capable of creating.
My parents were not inclined to buy fancy things. Friends had flashier Christmas presents. I almost always felt deprived relative to such things. Yet, I knew I had a savings account and sometimes saw how much interest it earned. Growing up with that as a subtle backdrop in my life gave me confidence to do many things. My grandchildren saw a little of their version of this story and seemed to understand it. That can be their Christmas gift to me, no matter what material things I see this year.
There will be another financial crisis. I hope the next one waits until they are old enough to comprehend its affect on their accounts. If it is too soon, there will be numerous opportunities for them to see bulls and bears in their never ending struggles. I hope our relationship gives me chances to help them understand the context for the ever changing times.
There is more to money than money.® The important message I want to convey with this writing is that financial Christmas gifts are not about giving money or what the giver believes the money should be used for. For my grandchildren, it might be used for academic education. I will be just as happy if it is used for the experience of a trip to an interesting distant place. They might lose it starting a business and learn from that and try again. I don’t care. For me, this gift is about them learning. The crucial element is relationships with adults who see and act on the moments they are ready to learn. Others can write what they will about financial Christmas gifts. This is my story and I am sticking to it.
Merry Christmas!!!
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. 50645
Our Comment by J. David Lewis -The humor/truth in this really amused my morning reading on the first day I read it. The advice is also pretty fantastic for anyone, no matter the age. I believe I can explain why ever item in the list is valid.
BY WARREN BOROSON
NEWJERSEYNEWSROOM.COM
BOROSON ON MONEY
“Some parents — with their kids off to college now — have asked me to provide their offspring with good, objective financial advice. Hence this list of financial tips for young investors.
7. The road to hell is paved with credit cards. Try your damddest to pay the full charges on time. (Hell itself is inhabited by people who run credit-card companies.)
8. A physician named Bernstein said it: “Stockbrokers service their clients the way Bonnie and Clyde serviced banks.” (Bonnie and Clyde, for you young folk, were notorious bank robbers.)
13. Always be on the lookout for a new job. There’s always a job better than the one you have.”
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family.
Our Comment by J. David Lewis – In a lot of families, this might be a touchy subject, as soon as the article implies non-married people moving in together. In our profession, there are increasingly open discussions about the financial issues that affect people who maintain households without getting married. Conference sessions are often devoted to some of the deeper topics, including the ways they differ from state to state. This item is more like something that might help young folks at the ages when they are starting careers. Nevertheless, the advice is relevant for anyone considering whether they will share resources with a partner of any kind.
”Maybe marriage isn’t in your cards right now or at least not yet, but you and your honey have decided to give it a shot and move in together. Before you pack up your closet and haul your furniture into your new place, think about these three things.”
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family.
Our Comment by J. David Lewis – I participated in this National Association of Personal Financial Advisors (NAPFA) video, which explains very important concepts in financial services. Before Resource Advisory Services was founded 25 years ago, I believed in fiduciary and Fee-Only financial planning. When the chance came to help explain and promote these concepts, I jumped at the opportunity.
J. David Lewis founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. Contact him using david.lewis@resourceadv.com.
Talking Money With Elmo by Ron Lieber
Seasonal Gifts with Financial Themes
