As we begin a new year, it’s common for parents to start thinking about introducing the concept of ‘planning for the future’ to their children.

As a financial planner, I’m typically approached by clients about financial matters, like setting-up a regular savings plan, planning for future education needs etc. But, well before that talk about money, and the virtues of saving and discipline, the concept of ‘planning for the future’ can be introduced to children at a much younger age.

Of course, the level of complexity and the specific aspects of future planning will evolve as chidren grow older, but here are some general guidelines:

1. Early Childhood (3-6 years): At this age, children can start learning basic concepts of time, routine, and responsibility. Simple activities like setting goals for the day or week, creating a basic routine, and understanding the consequences of their actions can be introduced in a playful and age-appropriate manner.

2. Primary School (6-12 years): As children enter school, they can begin to grasp more abstract concepts. Introduce the idea of saving money for something they want, setting short-term goals (such as completing homework on time), and discussing the importance of education for future opportunities.

3. Adolescence (12-18 years): During these years, children can start developing a more detailed understanding of their interests, skills, and future aspirations. Encourage them to explore various career options, set academic and personal goals, and consider the implications of their choices on their future. Introduce concepts like budgeting, financial responsibility, and time management.

4. Late Adolescence (18+ years): As teenagers approach adulthood, they should have a more comprehensive understanding of long-term planning. This is the time to discuss career paths, higher education options, financial planning, and setting realistic and achievable life goals.

Remember that these age ranges are general guidelines, and individual children may develop at different rates. The key is to gradually introduce age-appropriate concepts and to provide guidance and support as they navigate the process of planning for their future. Encourage open communication and be a supportive presence as they make decisions and set goals.

An open invitation to clients…

I’m passionate about lifting-up the next generation - I truly love this kind of work. So if you feel that your child or grandchild might benefit from personally meeting with me, feel free to take advantage. I’d be delighted to set aside an hour or so, free of charge, to discuss their dreams and ambitions, and perhaps introduce them to some basic investment concepts. Sometimes all it takes is a flicker of an idea to encourage action or change.

Rick Maggi, Westmount Financial