Why do we save money?
There isn’t a shortage of information surrounding why to save, how to save, and where to save. And after all, we have to plan for the unexpected and the expected—your first home, kids, college, retirement, and job loss. The list goes on. One thing for sure, saving can be a team sport for you and your family if you encourage it to be. So, talk with your children about money.
How do you Answer these Questions?
- Why do you save money every month?
- When do you plan to retire; earlier than the age of 66?
- Why do you save for your kids’ education?
- What charities are close to your heart?
- When do you talk to your kids about saving and money?
These questions do not yield yes/no answers
These questions require discussion and open communication with your family. Let us help you get started.
Saving Each & Every Month
In the “Why an Emergency Fund is a Good Idea” blog, we take a closer look at why saving for an emergency is so important. No one could have predicted the tremendous impact COVID-19 would have on our lives. And we just don’t know when our home will have a leaky roof or when the hot water tank will fail. Having an emergency fund is not about predicting the future. It’s about being prepared. And it’s not a matter of IF you will need savings to cover a disaster; it’s a matter of WHEN.
Your Retirement is Around the Corner
How many times have you said, time flies!? Well, that’s the case with planning for retirement. It will be here before you know it. Wherever you find yourself on this journey, it’s crucial to plan. Knowing how your money will serve you and your loved ones into the future will help you prioritize your time, spend money more on necessities versus wants, and bring peace to your family. Talk about your goals of retirement with your family.
Saving for Your Kids’ Education
“When my daughter grows up, she is going to be a doctor.” No one knows what our son or daughter wants to be when he/she grows up, but the options are endless. Some may take the route of a higher education degree, others will put their talents to work immediately after high school, and many will serve our country in the military. We know that saving is a matter of setting priorities and then acting on those priorities. We can’t tell you if saving for education is more or less important than saving for retirement, but we can tell you that talking to your kids about saving for their education is essential.
Family Philanthropy
Leaving a legacy doesn’t just happen overnight. According to Giving USA 2020: Charitable giving showed solid growth, climbing to $449.64 billion in 2019, one of the highest years for giving on record. According to a study by the Indiana University Lilly School of Philanthropy Women’s Philanthropy Institute, adults are more likely to give to charity if their parents gave to charity.
Talk to your family about philanthropy and leaving a financial legacy to their children’s children. If you make them part of your financial planning, they may grant your wishes. Share with your kids and your grandchildren the charities that you are passionate about today. Sign up for volunteer outings and learn what organizations and nonprofits are important to your family.
A Stepwise Approach to Estate Planning
At Muhlenkamp, we are talking with families about the importance of saving, retirement, and philanthropy. We think it’s essential to draft an estate plan and share it with your children. If you have beneficiaries, it will be necessary to have open conversations about inheritance, medical directives, etc.
We would love to talk with you about your financial aspirations and needs. At Muhlenkamp, making your money grow is our top priority.
The opinions expressed are those of Muhlenkamp and Company and are not intended to forecast future events, a guarantee of future results, or investment advice.
