Families that have a significant amount of wealth often ask the following question: “what can we do to pass money skills on to our children?” One of my favorite ways of answering this question is through using philanthropic planning as a method of teaching money skills.
The nice thing about philanthropic planning is that it not only does good for the community, but is a perfect vehicle for providing age appropriate education for your children. With a good plan you would know what to do at different ages for your children.
For example, when your children are younger you could take them on a tour of some of the activities that you support. Your children will learn about those who might be less fortunate as well as giving you a chance to explain how and what your thoughts are about helping these people have a better life.
As your children get older you can have them start coming up with ideas about how you as a family can help those less fortunate. Part of this can be helping them learn about budgeting philanthropic donations and helping them learn which organizations do a good job with their money and which don’t. This will help your children learn about responsible financial stewardship.
Finally, as your children become old enough to really understand how finances and philanthropy can be used together you can put together a family council where the purpose is to discuss family issues as well the philanthropic donations you will make for the year. Having a discussion that ranges over not only whether the philanthropic idea is good, but if the sponsoring agency does a good job of meeting the need can help your children understand financial management as well as philanthropic stewardship.
I like the idea of combining philanthropy with financial education. I’m interested in your thoughts. Please either click on the contact us button or send me an email at Jpatrick@stage2planning.com.