Browse Our
  • Cash Flow and Retirement
    Clear Topic Cash Flow and Retirement
  • Financial Planning
    Clear Topic Financial Planning
  • Annuities
    Clear Topic Annuities
  • Business Solutions
    Clear Topic Business Solutions
  • Umbrella Liability Insurance
    Clear Topic Umbrella Liability Insurance
  • Education Funding
    Clear Topic Education Funding
  • Disability Income Insurance
    Clear Topic Disability Income Insurance
  • Employee Benefits
    Clear Topic Employee Benefits
  • Estate, Gift, & Trust Planning
    Clear Topic Estate, Gift, & Trust Planning
  • Life Insurance
    Clear Topic Life Insurance
  • Executive Benefits
    Clear Topic Executive Benefits
  • Property and Casualty Insurance
    Clear Topic Property and Casualty Insurance
  • Investment and Asset Management
    Clear Topic Investment and Asset Management
  • Long Term Care Insurance
    Clear Topic Long Term Care Insurance
  • Blog
  • In the News
    Clear Topic In the News
  • Latest Insights
    Arming clients with the tools to teach kids about finances

    Arming clients with the tools to teach kids about finances


    By Thomas J. Henske

    Advisers are reaching out to the next generation through their parents.

    Advisers have a unique opportunity to make a difference in the way our country approaches the development of financial literacy.

    On the surface, endeavoring to help young people (Ages 6-20) develop a basic understanding of money concepts does not seem to be an agenda item that can really get traction in an already chaotic world of financial advice practices. When you contemplate adding yet another item to your to-do list, a list that already includes: client meetings, paying careful attention to economic markets, products, tax law changes, compliance, new client prospecting, networking, etc., it amounts to a Herculean task to now take on educating your clients’ children about money.

    Such an endeavor doesn’t seem doable — or profitable. But what if you were able to build deeper relationships with your clients?

    If you could just find a way to engage your current clients in a values-based discussion about their children’s education as it pertained to money. Imagine you could do this without having to actually meet with the child and still get value-added points that separate you from your competitors.

    It’s the type of conversation that your current clients are having with their friends — you know, those people who you are hoping your client will refer to you. For the majority of our clients, the three things that are most important to them are their 1) health, 2) wealth, and 3) kids, and not necessarily in that order. That is what they talk about in their tight social circles — a conversation you would like your name included in.

    You want your clients to be out at dinner with another couple on Saturday night talking about how their financial adviser is arming them with tools and resources to help educate their kids about money. You hope that the other couple (your prospect) is saying to themselves, “Why doesn’t our wealth management company do that for us?”

    Without giving away our secret sauce, Lenox Advisors sought to do this for our clientele by developing age-based lesson plans that we put in front of clients on an annual basis (depending on the client’s interest). They give parents a clear, easy-follow, blueprint of the lessons they might want to go through with their children to make sure money conversations are happening in their own households.

    This lesson could be as basic as teaching a 6-year-old the difference between pennies, nickels, dimes, and quarters, or, it could be as robust as starting an allowance program with a 12-year-old. It could eventually morph into budgeting for that 16-year-old’s car, gas, and insurance money.

    It doesn’t take a lot because the lessons are very basic and more just a tool to have a conversation begin in the home between a parent and child. One of the most important parts of financial literacy is for a family to help their children understand the values that surround the money decisions that they make.