One of the greatest transfers of wealth will be taking place over the next decade as Baby Boomers will be passing on their estates to their children. If history is any indication, most of that fortune will be lost inside of three generations.
This is why it is important to get your children involved in financial matters at an early age. One of the best ways to teach them about money and your values is to get them involved in philanthropic activities. By following a few simple strategies you can lay the groundwork for their financial education and ensure that your charitable legacy will remain intact.
Document Your Philanthropic History
By illustrating your family’s charitable giving history your children will have a better understanding of the motivations behind them. They will also be more inclined to carry on the family tradition if they know the origins of it.
Create A Family Mission Statement
Just like any business, your family should have a mission statement that clearly spells out the values and purpose. By involving your children in this process they will not only understand why they should give bt also will have a hand in deciding where the money will ultimately end up.
Get Them Involved
Regardless of your level of financial giving, you should get your kids involved in charitable activities as soon as possible. And it does not have to be through an organized charity. You can take your child and buy school supplies for those school children in need.
Spend one day with your kids and pack the supplies in bags or backpacks and involve them in the decision on which school to donate them to. You can even take it a step further and have them contact friends, family, and neighbors and get them to contribute and volunteer.
Allow Your Children To Decide Where To Contribute
One of the most effective ways to get your children involved in philanthropic ventures is to allow them to decide where the money goes. This will allow them to find a charity or cause that they feel strongly about.
Encourage them to do research on different charitable organizations and make a recommendation to you. Have them develop a plan to distribute the funds over a set period of time.
Setting up a plan for your family’s philanthropic activities will take some time but the effort will be worth it. Getting your children involved early will ensure that your charitable giving will continue through the following generations.