Investing Goals
Some children might start establishing their investing goals early in life at the urgings of their parents. The parents were always thrilled when their child would receive money from friends and relatives, especially around the holiday season.
As their wealth accumulated, their parents recognized that their children’s money could be drawing interest in a savings account. The early investing goals of these children were to earn enough money to have a dream vacation at an amusement park. Since parents will generally pick up the tab on all vacation expenses, the children’s money remained in the savings account and accrued interest over the years.
As these children got older, they began to work and added to their savings accounts every time they received a paycheck. Their investing goals changed dramatically during this time, and were now centered on earning enough money to buy a new automobile when they graduated. The savings account balance had grown significantly from the day when their first deposits were made and they were quite happy.
Their parents had their own investing goals to meet through the years, and met their goals one at a time. They had opened individual retirement accounts to build up funds for use later in life, and were primarily concerned with maintaining a positive cash flow to meet their family needs through the years. They did well on one of their investing goals, where they had bought and sold stocks to pay for vacations, braces for the children, and most recently, graduation gifts of two brand new automobile bills.
Their investing goals had also included an insurance policy for everyone in the family, and their policies were tailored to take care of one another financially if the other spouse was no longer there to provide financial support. The insurance policies on the children could be converted to cash at anytime after their 21st birthday. Their investing goals had included estate planning too, and they did not have to worry about their children having to pay off any of their debts after they were gone.
They guided their children as they grew, and taught them all of the investing goals that they should set that would allow them to live a happy life. They told them about their own stocks, bond, and annuities and even about the estate plans that they had in place for that time when they would no longer be there to provide for them. The children had grown, and so had their savings. Through the years, they used the financial teachings of their parents to create great wealth, that could one day be used to pay for a dreamland vacation to an amusement park for their children.
by Nathan.Smarty 19 years ago