I often am asked by clients, “Did so-and-so call you? They really need to meet with you.” Sometimes the answer is an unfortunate “No.” Most of my clients really understand the need for financial planning and how getting started sooner is always better than later. Many of them have become such great fans of the process that they are handing out my business cards to people who they think need my services.
Unfortunately, sometimes it seems that getting someone to start saving towards their future is like the old saying “You can lead a horse to water, but you can’t make him drink.” This can be even more frustrating to clients when they are trying to get their own children to start. What do you do when it is your own adult child not listening to you?
One method that has been successful for some of my clients is offering to open up a Roth IRA with a small sum of money if the child agrees to do a monthly investment (we’re talking only $50 or maybe more). This is often the incentive needed to get the child to start saving money. You can open up a Roth IRA with a mutual fund company that has low account minimums ($250 or so) when a small monthly investment is set up.
This is a great solution for everybody. The child has met with the financial planner, making the parent happy. The parent has started an investment account for the child, making the child happy. We frequently see that as the child watches the money grow, they become a fan of the financial planning process.
Good financial habits is one of the best tools you can give a young adult that will help them through out their lives.