As Father’s Day approaches I thought I would write about how Fathers can shape their children’s financial life. According to a John Hancock Retirement Services survey of 1,007 American adults conducted in late April, 56 percent of people said their fathers influenced their retirement savings and 62 percent said their retirement plans are similar to their dads’ strategy.
Paternal influence cuts both ways. A recent T. Rowe Price analysis found that people who have declared bankruptcy were more likely to have kids who do not save any money, compared to the children of people who didn’t declare bankruptcy.
When I look back at my childhood, I remember my first job working at McDonalds. My dad helped me set up my first investment account and I would put $25 a month into it. That one account created a lifelong habit of savings for me. As I got different jobs and my income increased, so did my savings.
Help your kids, no matter what age, learn how to pay themselves first and set aside a portion of their earnings into savings. It is not how much you earn but how much you save that counts. Kids will take on your beliefs and actions around money. They are watching and will model your behaviors into adulthood.
Information in this material is for general information only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.
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