Case Study on Randy and Frances who are married and are both 59 years old. They are retired and have 6 grandchildren. They have no mortgage debt, credit card or car loan debt. Their personal monthly expenses are $2200. Their monthly expenses for spoiling their grandchildren are $1500.　

If you are lucky enough like Randy and Frances to have 6 grandchildren and the financial resources to spoil them, you are in a great position. So they are actually in a teaching position. They can teach their grandchildren financial spending habits. The best way to teach is by example. Good financial habits is what put Randy and Frances in the position that they are in.

It is not what you make but what you keep that counts. Financial habits involve saving and spending. Children do not understand money and finances at a young age, but can be taught.

Set up a savings account at your bank to help the children learn the basics. Have them deposit into the account any money they receive as gifts so they can see the account grow.

Buying stock is a good habit to teach children. They cannot afford large purchases, but some companies do sell their stock in one share. So a great teaching moment for a child would be to buy one share of stock and let them see the dividends and/or splits occur. Let them see the statements. Your financial planner may have material that you can use to teach them.

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