BEYOND BUSINESS
TEACHING TEENS WEALTH MASTERY
SHARPENING DECISION-MAKING ABILITIES In personal finance, high schools can play a pivotal role. Students can be encouraged to read the financial news to understand market trends and make more informed financial decisions. Teaching them how to set realistic financial goals for significant life events, such as attending college or purchasing a vehicle, teaches planning and discipline, key aspects of successful financial management. FOSTERING A CULTURE OF FINANCIAL ACCOUNTABILITY Educating students about saving money and sound investment strategies promotes fiscal responsibility. They learn about the long-term benefits of compound interest and regular investing. Teens can build on their financial knowledge as they see the benefits of sound financial decisions.
ADDRESSING THE WEALTH GAP AND ADAPTING TO CHANGE Financial literacy is a powerful tool in bridging the wealth gap. Providing all students, no matter their background, with financial knowledge is a step toward leveling the economic playing field. As the global economy evolves, young people with personal finance skills are better prepared to adapt to changing job markets, investment trends, and saving strategies. Parents and guardians can make a considerable impact in lobbying local school districts to value and include personal finance education in high school and teaching it in their homes. Young people will be able to face life’s financial challenges confidently. As we nurture our youth for their future roles, their financial literacy is vital to fostering a society of economically stable and responsible individuals.
In today’s challenging financial world, equipping high school students with personal finance tools is essential. Arming young adults with the skills necessary to navigate the monetary challenges they’ll face is much like any traditional academic discipline. Here are a few of the tools they’ll need in their repertoire.
BUILDING A ROBUST FINANCIAL FOUNDATION
Helping students learn fundamental financial skills like budgeting, saving, and investing instills a deep respect for the value of money. Parents and school classes can help them understand credit, loans, and debt management to steer them away from potential financial pitfalls when they later make decisions about loans and credit cards. Practical lessons on tax filing and understanding employee benefits are invaluable, preparing them for adulthood and independence.
How Trusts Outperform Wills in Estate Security
Many involved in estate planning wonder if they should make a will or a trust. A trust is an estate planning document that allows a person to transfer title to their individually owned assets into the trust and control the terms of how those trust assets pass to their beneficiaries upon death. Trusts provide several advantages over wills. AVOID PROBATE Beneficiaries of trusts don’t have to undergo a lengthy probate process like a will. The grantor’s assets are transferred to the trust and upon the grantor’s death, the trust assets pass outside of probate to the beneficiaries, which results in saving the beneficiaries time and money associated with the probate process. PROTECTION FROM CREDITORS Assets that pass to beneficiaries through a will typically require probate administration. While beneficiaries under a will typically cannot be personally liable for their loved one’s debts, a decedent’s creditors are provided notice of the opening of a probate estate and have the
opportunity to file claims in the estate. The result is that the decedent’s assets are not protected from creditors. With a trust, a deceased grantor’s assets pass to their beneficiaries through the trust and as a result, the assets bypass probate and are not subject to creditor claims. GRANTOR CONTROL The grantor simply has more control over a trust than a will. A grantor can include provisions in their trust that puts “guardrails” or “conditions” upon the distribution of trust assets to their beneficiaries. This type of control is typically unavailable with wills. For individuals who are concerned about financially irresponsible beneficiaries, trusts can be a great option, because the successor trustee, the individual or entity who assumes control of the trust administration after the death of the grantor, may have significant discretion with respect to making distributions to the beneficiaries. EASY AND FAST ACCESS If you want your loved ones to have quicker access to their inheritances, trusts afford that
flexibility. With a trust, depending upon the way the trust is structured, your beneficiaries can have significantly quicker access to their inheritances. They do not have to go through the probate process and wait for the creditor claim period to expire, as is the case with wills. If you would like to learn more about trusts, please contact one of our experienced estate planning attorneys at 901-388-5805 .
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