The Financial Game: Click here
The Financial Game: Click here
Date Published: 4/21/2022
In one of my posts, I shared some key points concerning your vision. In this post, I want to share one of the most important things you can leave your heirs.
Can you see how your life would have been different if someone had set you down early and shared the family playbook? For some, it may have saved them from making bad financial decisions.
Even if you sat down with your children today and explained what to do after you’re gone, bar a miracle, your verbal plan would not make it to the bedroom. However, if you have a written plan, your success rate increases.
There’s a story in the bible about a prodigal son. In the story, Jesus shared how the young man demanded his inheritance while his father was still alive. However, it did not take long for the son to spend all his inheritance drinking, partying, and whatever please called his name. Ultimately, he ended up in a pig’s pen (Talking about going broke).
The fall happens when the prodigal son asks for the inheritance; today, we call it entitlement. It didn’t take him long to lose everything. I’m not sure of the extent of his financial training, but it’s obvious he didn’t understand how to manage money.
The story is no different today. Many professionals say the average inheritance is lost within the first or second generation. Can you imagine working long hours for 25 to 30 years and having your heirs waste their estate within 18 months?
The prodigal son problem is no different than today. Many from today’s generation do not understand how the banking system works, how to save or prepare for retirement, or why using a credit card is profitable. It was R. Nelson Nash, in his book, Becoming Your Banker, that said, “Banking is a process-Not, a product.” So do you understand why promoting education to your heirs is crucial?
They will never value it unless you let your kids work for something. So here’s a sobering thought. If your children can not balance a simple checkbook, what do you think would happen if you left them a $250,000 tax-free insurance policy?
In the book, Entrusted, the writer David York and Andre Howell said, “Entrusted Planning differs from modern estate planning, first in its beneficiary-focus. Entrusted Planning is more about preparing future generations.” In short, education is the secret to training multi-generations.
Are you interested in learning more about financial education? If yes, the next webinar entitled, Will$, Bill$, and Money Skill$ (Financial education seminar in a game format). The first ten spots are free!