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Welcome to this session of grand rounds, a collection of posts I have discovered in the blogosphere and have found of interest and hope you do too.
This offering of Grand Rounds looks at articles from around the web that deal with those smaller carbon copies of you running around in your home.
We say we would do anything and everything for our children.
But does that mean we have to mortgage our retirement for them, especially when it comes to higher education?
I would argue that being a financial burden on our kids in our later years is less desirable an option than having them incur some student loan debt.
Money apparently agrees with me in the article, “The Biggest Mistake Parents Make When Paying For College, According To A Financial Expert.”
I would love to leave a financial legacy for my daughter.
The sad thing is most wealth is lost within the following two generations.
It makes no sense to deny oneself splurges, build up a sizeable nest egg you hope to pass on to future generations, only to see it cracked before it hits the 3rd generation.
However if you still are undeterred and hope that your kids can break this pattern, it behooves you to see how successful families are able to propagate the wealth throughout the financial tree.
And what better family to model yourself after than the Rockefellers?
CNBC sheds some light on the secret to this family’s generational wealth in, “4 Secrets To Raising Wealthy Kids, According To The Billionaire Rockefeller Family.”
There is a fine balancing act between spoiling your children, which could lead to self-absorbed entitled adults, and letting your kids experience hardship to help cement the importance of sound financial practices.
I admit my daughter can sometimes pull at my heartstrings soI give in and drop some money on her (clothes mainly).
I still try to take some time and educate her about finance, particularly with passive income projects I am involved in, and have even created the “Bank of Daddy” with incredible rates so that she learns the power of compound interest.
White Coat Investor shares some tips on how you can prepare your children for a financially sound future in a post written by his father in-law, “How Affluent Parents Can Teach Their Kids About Money.”
We all know that giving our children a head start and helping to pay for their college expenses is a noble cause.
Most people are aware that they can fund each child’s 529 plan $15k per parent with no tax implications.
You may also know about “superfunding” a 529 plan by front loading 5 years of contributions in a single year.
So which choice will give you the most bang for your educational buck?
Financial Samurai list some of the positives and negatives of each method to help you decide in, “Should I Superfund A 529 Plan? Evaluating the Pros and Cons.”
I have written previously that what is more important is the time you spend with kids, not what you buy for them.
If your kids are anything like mine, that shiny new toy grabs their attention for a brief moment in time before it is relegated to the toy chest graveyard.
Cory Fawcett MD agrees with this wholeheartedly in his article, “Spending Time With Your Family Is More Important Than Spending Money On Your Family.”
Hope you enjoyed the reading material.
Have a great rest of the week.
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