Nathan Garries knows something about generational wealth. As a third-generation financial professional, he learned important lessons on saving, budgeting and financial security from an early age. And he has passed down these essential lessons to his own children, creating a valuable inheritance of financial knowledge.
As a Certified Financial Planner at Beyond Business Financial Solutions in Edmonton, Alberta, Garries spends his days counseling clients on how to achieve financial success through prudent portfolios and wise personal choices. At home, he teaches risk and reward in daily activities, making learning about money interesting and fun.
Children look to parents for instruction, guidance and example. Lessons kids learn at a young age about the value of money will have a powerful impact on their financial success later in life.
The good news, says Garries, is that teaching healthy financial habits doesn’t have to be a boring exercise. From the front-yard lemonade stand for young kids to the thrill of checking stock prices with your older teen, navigating the stages of financial literacy can be a rewarding adventure for the whole family.
In addition to his CFP credentials, Nathan Garries is an Elder Planning Counselor and a Certified International Wealth Manager specializing in Advanced Retirement Management, Advanced Tax and Estate Strategies and Advanced Investment Strategies. Over the course of his career, he has seen first-hand how the success of a portfolio can make a dramatic difference in the life of a family. Solid investments can make a comfortable home possible, send kids to college and ensure a happy retirement. On the other side of the coin, neglecting financial basics can result in opportunities lost and dreams delayed.
Garries recalls how his parents looked for ways to teach about money through everyday tasks. Anything related to money was a lesson in value, stewardship and judgment. From management of an allowance to purchasing decisions in the toy aisle, he steadily acquired core skills in financial literacy. By age 18 he and his sister were active stock investors, on paper.
This same strategy can work wonders in your own family, advises Garries. The first step is the most obvious: Begin early. Kids’ perspectives on money form early, and as with so many other stages of development, children learn a lot from the behaviors they see modeled in the home.
Next, encourage savings. Start with a piggy bank, and later help your child open a savings account. Teach the critical lesson that piggy banks are not meant to be broken; and that savings are not a credit line for impulse purchases, but rather should be allowed to grow over time.
Provide an allowance, but also require children to earn it, based on simple chores and positive behaviors. When they are older, show them how to make a budget and live within it. Encourage them to generate their own modest cash contributions, whether through a part-time job or an idea for a new product or service.
Emphasize the value of money and discuss how to make smart choices. Share the concept of opportunity cost — the future opportunity they may give up when they spend money in the present.
And, as mentioned earlier, make sure you are modeling the behavior you want your kids to imitate. Show restraint in your own purchasing decisions, and demonstrate your commitment to the family budget.
Soon, maturing kids will be ready for more advanced lessons, such as the proper use of credit cards, the risks of debt and the power of compound interest. In a sense, investing in your kids’ financial literacy works in much the same way as compound interest, Garries observes: You begin early, simply and modestly. In time you will reap a tremendous reward — and create your own generational legacy.
