The Gift of Giving: Teaching Financial Literacy During the Holidays

It’s that time of year where both family matters and financial planning have extra significance. On a family level, you have holidays like Thanksgiving and Christmas that bring everyone together and remind us what’s truly most important in life. This is also the end of the fiscal year. Financially savvy business owners and individuals are making critical year-end tax moves and planning for 2024 and beyond.

This unique intersection of family and finances may present a wonderful opportunity. You can consider using some of this time with your loved ones to talk about important financial issues that will ultimately impact you and your immediate family. Below are some of the topics you can discuss with your parents, children, grandchildren and other family members who play a significant role in your life.

Teach Financial Literacy

If you have built your own wealth, you have likely learned a lot throughout the years. You’ve made good moves, and you’ve probably made a few mistakes along the way. Take this time to share some of your wisdom with the younger generation. Teach them the basics of financial literacy. Set them up for a brighter financial future.

You can discuss topics like investment diversification and why you want to have a diversified portfolio to to protect against market volatility. Talk about work/life balance and general financial responsibility when it comes to spending and saving money. Draw from your own experiences to share insight that will help them make better financial decisions as they plan for their own futures.

Estate Planning

Time with your immediate family may also provide the perfect opportunity to discuss estate planning issues. You may want to talk with your own parents and make sure they have all the right pieces in place (wills, trusts, etc.) to ensure their wealth assets are distributed properly. If you have grown children, discuss your own estate plan and how everything will work if something unexpected happens to you. Understand their financial priorities and how you can best help them when you are no longer around.

If you own a business, you can bring this into the discussion. How will your family be involved if you decide to leave the business, or if something else happens that forces you to leave the business? Will they take over your ownership stake? Will someone take over your role in the company? Will the business be sold or closed once you are gone? There are many important questions to ask and there’s no better time than when you are together with the family members who are key parts of your estate plan.

Gifting and Charitable Giving

Next week, we will dive deeper into the topic of charitable giving during the holiday. We will also discuss strategies for tax-free gifting within your family before the year ends. You may be able to do a lot of good with some financial gifts now, in addition to addressing your overall estate planning needs.

If you are ready to discuss your financial future and deal with important issues like wealth management, business planning, tax planning and estate planning, contact Illumination Wealth today and talk with one of our experienced financial advisors. It’s never too late to start your road to financial freedom!