This Mother’s Day, think of the children
If you’re a mom, you’ll probably receive nice cards and flowers on Mother’s Day. But of course, your greatest gifts are your children themselves. And since you want to see them happy and financially secure, perhaps you can use this Mother’s Day as an opportunity to consider ways to help them at various stages of their lives.
When your children are young
• Teach them to be savers. Encourage young children to put away part of their allowance, or any money they receive for household jobs, in a savings account. You could offer to match their contributions dollar for dollar.
• Help them become investors. Consider giving your children a few shares of stock in companies with which they are familiar.
By following the movements of their stocks with them, you can explain how the markets work and how increasing share ownership is one key to helping build wealth.
• Contribute to a college savings plan. One of the best things you can do to boost your children’s chances of success in life is to help them go to college. Your financial adviser can help you establish a registered education savings plan.
When your children enter the working world
• Encourage RRSP contributions. A registered retirement savings plan is a great retirement savings vehicle. Once your children have earned income, they can contribute to an RRSP.
• Make long-term-care arrangements. If you need long-term care, such as an extended nursing home stay, and you are inadequately prepared financially, the burden could fall on your children. Now is the time to consult with your adviser to prepare for possible long-term costs.
When your children reach middle age
• Communicate your financial situation and estate plans. Don’t leave adult children in the dark as to your financial information. Share everything you can about how much you own, where you keep your assets and how you plan to eventually distribute them. By clearly communicating your situation and wishes now, you can avoid major problems later.
• Create a power of attorney. You can appoint another person, such as an adult child, to conduct your business and financial affairs if you become physically or mentally incapacitated. Such a move can help reduce stress your children may be feeling, while allowing them to make moves that can help preserve your finances.
Mother’s Day celebrates the special bond mothers have with their children. By following the above suggestions, you can help strengthen that bond throughout your lifetime.
Deborah Leahy is a financial adviser with
Edward Jones, specializing in assisting seniors.
Edward Jones is a member of the CIPF.