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FINANCE
THE GIFT THAT LASTS
A LIFETIME
by Jill Ciccarelli Rapps, CFP®
Financial Advisor
I t’s hard to believe that the holiday season is nearly upon us! As we
celebrate the festivities with our families and loved ones, many of
us are searching for the perfect holiday gift for our children and
grandchildren. While we may feel compelled to buy the latest tech
gadget or a flashy new toy, you may want to consider the gift that lasts
a lifetime: financial knowledge.
AN UNFORGETTABLE LESSON
Growing up in western New York, I remember going on “road trips”
with my parents and siblings.We would visit a company and take a tour
of their facilities, or spend time exploring a farm. Our experiences on
the road with Mom and Dad served a valuable purpose: educating my
siblings and me about saving and investing.
At an early age, we learned which goods were produced in the
factories and farms we visited, and that the demand for those goods
would go up and down over time. We learned that we could invest our
money in the companies we visited – as demand for their products
increased, we could earn money without actually working as a farmer
or a laborer.
Above all, our parents taught us the importance of starting to save
early in life, and to save a little bit of every dollar that comes your way.
These simple but powerful lessons have had an enduring impact on our
lives, leading us down the road towards financial success.
GIVE YOUR GRANDCHILDREN A JUMP START
Engaging your grandchildren in a financial conversation can pay
dividends for years to come. Everyone can benefit from having this
valuable discussion, regardless of their age or level of interest.
Imagine you are having lunch with your 8-year-old grandchild. You
recently set up a mutual fund for her. How do you discuss this topic
with him or her? The best approach is to keep it simple and build on
their knowledge over time.
Start by explaining that there are many companies in the fund and
that he or she owns part of these companies – which means they will
make money when the companies make money.While your grandchild
probably won’t remember everything you say, you will plant the seeds
for further education throughout her life.
The next step is to provide your grandchild with a memorable gift
that relates to their investment. For instance, if the mutual fund holds
Tesla, purchase him or her a model Tesla car and explain that they own
part of the company that builds those cars.
As your grandchild continues to grow and mature,you can introduce
more detailed concepts. You can talk about how stocks work and why
the prices fluctuate, and give him or her an update on the performance
of her investments. To add even more value to your financial lessons,
you can supplement your conversation with interactive financial tools
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(many resources are available online) or enlist
the expertise of a financial advisor.
With adult grandchildren, I recommend
starting a conversation about 401(k) plans.
Many young people don’t understand how
a 401(k) plan works; as a result, they don’t
participate in the plan and miss out on the
benefits. Emphasize the value of making
regular contributions. Explain that most
employers will match your contributions,
and illustrate how their money will gain
compounding interest throughout their entire career.This is the perfect
opportunity for you to impart valuable lessons that can guide your
grandchild towards financial wellness.
To reinforce the wisdom you share with your grandchild, you can
give them tangible gifts that promote financial success. A powerful way
to encourage your grandchild to save is to match their savings. Another
idea is gifting time with a financial advisor, who will guide them in
identifying their current needs and their financial goals for the future.
Books can also provide a wealth of financial knowledge that will
benefit your grandchild. I highly recommend these books, which are
two of my favorite reads:
• The Richest Man in Babylon by George S. Clason
• Five: Where will you be five year from today? by Dan Zadra
It’s never too early to share your financial experience with your
family. This holiday season, capitalize on the opportunity to help your
children and grandchildren prepare for a lifetime of financial success.
Give the gift that lasts a lifetime!
Jill Ciccarelli Rapps, CFP®
www.CASMoneyMatters.com
Ciccarelli Advisory Services, Inc. is located at
9601 Tamiami Trail North, Naples, FL (239.262.6577)
Jill Ciccarelli Rapps is a CERTIFIED FINANCIAL
PLANNER®, a trained life coach and a partner of Ciccarelli Advisory
Services, Inc., a family-focused wealth management firm in
Florida and New York.
Investment advisory services offered through Ciccarelli Advisory
Services, Inc., a registered investment adviser independent of FSC
Securities Corporation. Securities and additional investment advisory
services offered through FSC Securities Corporation, member FINRA/
SIPC and a registered investment adviser.
Life in Naples | November 2016