Financial Intelligence
With the global financial and emotional intelligence portal

On a recent trip, I recognized the value of leaving a legacy. My trip reminded me of the sacrifice, hard work, vision and commitment made by others that have benefited me immensely. The gift of my ancestors has enriched my life and provided amenities for which I am grateful.

As I reflected on the greatness of leaving a legacy, it brought to mind the importance of leaving a financial legacy and the benefit of creating a nest egg for progeny and future generations.

It is prudent to not only prepared for retirement, but to keep in mind the beneficiaries of residual retirement and other savings and the enriched lifestyle it affords to them. I have one client in particular who communicated how important it is to him that his spouse and his children and their children are financially taken care of upon his death. His top priority for investing prudently and wisely is for the benefit of his family. In choosing Paragon as his financial advisor, it was important to him that his priorities were equally important to us.

The value of leaving a financial legacy is priceless for both you and your family. First, your financial preparation allows you to be self-sufficient during retirement. Your preparation contributes to your peace of mind knowing your family will have increased financial ease. And in some cases, a monetary gift now to family members translates into tax benefits to you now. Most importantly, the simple act of giving is empowering and fulfilling for you.

Your progeny, of course, also benefits from you gift and preparation in countless ways. First, your monetary gift continues its growth possibly for years after death. Your gift enriches the lives and lifestyle of its beneficiaries– college education paid for, down payment for your newly married son or daughter, unforeseen financial strains eased etc. etc. Your preparation also sets a precedent and begins the pattern and habit of financial intelligence and education for years to come. Your gift opens doors and opportunities to financial success that otherwise may not have been available. Most importantly, your forethought, sacrifice and commitment will be remembered, appreciated and emulated by the next generation.

I am a big proponent of retirement planning, and planning now. One way to give to our families is by naming spouses and/or children as beneficiaries of IRA’s, 401(k)s, etc. Not only designating beneficiaries, but apprising family members that they are the recipients of such a gift. And then follow up with education on prudent investing when the funds transfer to their possession. Several different retirement options allow significant contributions, tax deductions, and ample time for growth and compounding. Of course, it is always important to consider risk, inflation, tax bracket, and investment time horizon, etc. when considering how to invest retirement monies.

Another option to ensure future generations benefit from your financial success is to establish trust. Trusts specify to whom assets are to be allocated and of course, are legally binding. Trusts also aid in estate planning and reconciling this aspect of financial planning. Most importantly, as my client did, make it a priority to leave a financial legacy.

My trip was enlightening as it reminded me that it isn’t all about me or us, but about what we give to others and the principle this instills in ourselves and in our families. Leaving a financial legacy to our families and future generations is empowering to both the giver and the recipient, and it is a gift that can grow for years to come.

“Tell me and I will forget … Show me and I may remember, INVOLVE me and I will learn and understand…”

Let’s look at why the playing of financial board games can make a huge impact on your child’s future.

1) Games reveal a lot about a person’s behaviour.

As you watch and listen to your kids, others playing the game and yourself as well, do they/you…
Take losing well or are they a sore loser? Boast about winning? Cheat to win or to gain an advantage? Bend the rules? Argue over small details? Have a game plan or just react to situations? Have to have it all NOW and can’t delay their gratification?

Plato said, “You can learn more about a person in an hour of play than a year of conversation.”

2) Financial Games create a safe environment…risk taking is encouraged.

Some kids know that it is better when you don’t ‘have a go’ because they could set themselves up for failure. When they play financial board games, they are able to take risks and not be penalised too much.

3) Financial Games give you feedback about how you are playing.

You and I know that, when we make a mistake in a game, we quickly try to correct it. I remember my brothers and parents letting me know and they would suggest what to do. Does that sound familiar to you?

Parents, these games also give you the chance to comment on your kids’ behaviours.

4) Financial games increase the learning process of your children.

When our kids are playing these games, they are using many different learning processes…talking, listening, watching, reading, critical thinking and moving. They are also learning to work smarter, not harder.

Isn’t that what we want to do with our money? Have it work SMARTER, not harder?

Losing and making money are a critical part of the real world. By being involved, our kids’ learning is accelerated and stimulated.

5) Financial games teach our kids valuable financial skills while they are having fun.

When our kids get money, they get control over their financial future. Financial games teach our kids about the importance of paying themselves first. They learn the importance of buying assets and keeping their expenses low.

This will increase their passive income and so they eventually become financially free.

Here’s what I invite you to do now:
Turn off the TV, the computer, the Xbox and start playing financial games. Your family will have valuable interaction time together. Buy some financial intelligence board games, such as Monopoly, Cashflow for Kids or Cashflow 101.Have some fun! Play the games as often as possible. Repetition reinforces the concepts presented. The sooner you start, the easier it will be for your kids.Let’s make it a habit.

Can you see that this means your children are intently watching and learning, consciously and subconsciously, from what you DO with money, what you SAY about money and from the EXPERIENCES you’re providing them with regard to money? Give them the opportunity to live an abundant, successful and happy life.