By Farm Bureau Financial Services on May 5, 2021
For many people, financial security is about more than being able to pay bills on time
There are many steps you can take to start building generational wealth.
For many people, financial security is about more than being able to pay bills on time. It’s about planning for the future, which includes responsibly managing debt and saving for retirement. And, if you’re a parent, it’s about laying the foundation for your children’s future. That’s what it means to build generational wealth: creating a solid foundation for your children’s financial success, which they can continue to build upon for future generations.
Teach Your Children About Finances
One of the challenges is that you’ll have limited control — if any — over how your children will manage the assets you leave behind. That means one of the most important things you can do is to teach your children about financial health and help them build good financial habits. Even if you don’t have many assets to pass on to your children, teaching them how to budget, how to manage debt and how to save money will give them a running start on securing their own financial future.
Explore Real Estate
Beyond buying a home, real estate is a long-term investment that can reap financial benefits for your family today and in the future. Buying a rental property (or two) can be one way to diversify your investment portfolio and add another asset you can pass down.
Give Your Children a Head Start
Student loan debt is one of the greatest financial burdens for younger generations. In 2019, about 70 percent of U.S. students took out college loans. By investing in your child’s education and allowing them to begin their lives with little or no student debt, you help them start strong and begin building wealth sooner.
Investments can help you prepare for a range of life’s needs — from paying for your children’s college tuition to funding your retirement. Many employers offer retirement plans that make investing simple and can help you grow your investments more quickly by matching your contributions.
Get Life Insurance
Life insurance protects your family financially if you pass away by replacing your income so your children and your family will continue to have the financial support they need. These benefits are paid directly to your beneficiaries, so there should be no additional costs or delays in receiving the financial benefit you’ve secured for them.
Make a Plan
A will ensures your assets are handled in the manner you choose after your passing. And, in many states, a will is your only means of stating who you want to act as legal guardian for your minor children if you die. Even if you're young or your estate is modest, you should have a legally valid and up-to-date will.
Get the Support You Need
If you’re looking for someone to help you create a strong financial foundation, or if you’re ready to get started building generational wealth for your family, contact your local Farm Bureau agent or advisor to learn more.