I've recently started attending a new MOPS meeting with a friend out here. The meetings sometimes have crafts, discussions or guest speakers. This week was a financial planner who came to speak with us.I thought this was a great idea for a meeting, because I get the feeling that most of the money decisions in many homes are made by the man - and often times the wife is just left to sign paperwork. It's not the case here, but from talking with other women, I get that feeling.
One of the things he talked with us about was the importance of whole and term life insurance plans on ourselves. We often don't think about these things for ourselves (or just get the basic little plan the breadwinner's office offers)- but we have to ask - what do we want to happen to those we love should something happen to us? The main breadwinner usually gets a big plan on themselves - but what about the one who runs the home, takes care of the kids. For instance, if something should happen to me - there would be day care costs for two kids and housekeeping, just as a start. I know Xiris questions my housekeeping skills, but I don't think he understands how often I am wiping, cleaning, sorting, putting away, wiping some more etc etc etc. I don't think I have any life insurance plans on myself... I need to change this, soon.
Also, on the life insurance plans. It's important for us as parents to get whole life insurance plans for our children. If only for the simple fact that it will allow our children to get a their own life insurance plans when they are old enough - NO MATTER what their health. I haven't done this yet, but I will be doing it as soon as we can.
Now, the topic of this post? The financial planner also gave us tips to help our children understand the importance of money and saving, not using credit - that kind of thing. I thought this was a great talk - especially given the fact the many of the toys out there that involve money have gone to "credit" type applications... seriously, credit cards on monopoly, life, the barbie kitchen playset and even the little cash register toy.
He brought up an interesting idea. A 401K(ids) plan that you draw up with your kids. Make a deal with them. "For every penny you save, I will match it" And open a savings account to do this with. I would suggest setting a limit, just like a real 401K. $10 a month, or $1000 a year - whatever you decide. Then you can just keep matching as long as you decide - set a limit on that too - 18, 21 years old... My thoughts on this is - as well as teaching the importance of saving - there will be enough money there for a nice car or trip or something special. This gives the kids something to look forward to (sure when they are little they will just know they are saving, but as they get older, they'll get it), but also gives them the chance to make the choices of how much they'll put into savings.
It's definitely a plan I am going to start as soon as we are at that stage. The kiddos don't know what money is just yet - and I'm fine with that.