Every parent dreams of giving their children a bright, secure future. But in a world where financial challenges can arise unexpectedly, teaching kids about money—and planning for their long-term financial well-being—has never been more important. From setting up trusts and savings plans to choosing the right insurance, the steps families take today can shape their children’s opportunities for years to come.
Expert Guidance for Families
To help parents navigate these crucial decisions, we spoke with two experts: Delwyn E. Webber, Esq, Estate Planning Chair at Jones & LoBello, and Daniel Mitchell, Investment Professional at Pharus Financial & Insurance Solutions. Both offered practical advice for building a foundation of financial stability and teaching children the values and skills they’ll need for lifelong success.
Estate Planning: Building a Safety Net
According to Delwyn E. Webber, the most important legal step that parents can take is to have an up-to-date estate plan, anchored by a properly funded family trust. “A family Trust can provide a structured plan for distributing assets, avoiding probate, and distributing timely inheritance for beneficiaries,” Delwyn explains. “A Trust allows the Trustor(s) to control how and when assets are distributed, even after their death, and provides flexibility in managing those assets according to the specific terms of the Trust.”
Delwyn emphasizes that parents can set restrictions on when and how children access their inheritance, especially if they are minors. “The most common examples would be to have the nominated Successor Trustee hold the children’s funds in Trust until the respective child attains a certain age; however, the Trustor can give the Successor Trustee discretion to use those funds for the children’s health, education, maintenance and support, until such time as the child has attained a certain age,” she says.
Beyond trusts, Delwyn recommends naming guardians in estate plans to avoid lengthy court processes and ensuring that assets not owned by a trust have “payable upon death” beneficiaries. For families thinking ahead to education, “making contributions to a 529 plan can be a strategic part of estate planning and can offer substantial tax advantages,” she adds.
Teaching Financial Responsibility Early
But estate planning isn’t just about documents—it’s also a chance to teach kids about money. “Make financial literacy a family affair,” Delwyn advises. She suggests giving children a weekly allowance for chores, gradually increasing the amount and spacing out payments as they grow. “If a child spends the entire allowance right away, refrain from giving them an advance,” she notes, encouraging parents to let kids learn from experience.
Delwyn also recommends dividing allowance into shares for saving, spending, and even sharing with others or donating to charity. “Simply talking about money on a regular basis with your children can help them feel more comfortable with financial concepts and develop a healthy attitude regarding spending and saving,” she says.
Insurance: Protecting What Matters Most
Life insurance is another key piece of the puzzle, according to Daniel Mitchell. “The best time to buy life insurance is when it is decided to build success for the future,” he says. For young families, policies that gain cash value can double as savings tools, helping to fund education or other long-term goals. “Life insurance that gains cash value can be used to save and grow money to fund education and other long-term goals,” Daniel explains.
When choosing a policy, Daniel advises parents to focus on their goals and time horizon. “The goal for the money and the time horizon are the most important factors,” he says. With over 25 years of experience, Daniel practices what he preaches: “I am not only recommending planning, I also personally do the financial planning for my family.”
Avoiding Common Pitfalls
Both experts warn against common mistakes. Webber cautions, “Oftentimes a Trust is created but assets are not transferred into the Trust, resulting in those assets going through probate to get into that Trust. If you go to the expense of creating a Trust, you must ‘fund’ it.” She also highlights the risks of not naming beneficiaries, delaying investments, underestimating future costs, and neglecting insurance or retirement plans.
Daniel adds that consulting with a reputable financial planner can help families avoid costly errors and choose the right tools for their needs.
Start Today for a Brighter Tomorrow
While planning for your child’s financial future can feel overwhelming, both experts agree that small, consistent steps make a big difference.
“We cannot stress the importance of having an Estate Plan,” Delwyn concludes. “Schedule a free consultation with an estate planning attorney who can explain the process with you and put your mind at ease.”
By combining smart planning, open conversations, and the right professional guidance, parents can empower their children with the knowledge and resources they need to thrive—today and for generations to come.