Viking Magazine - March 2016 - 10

Finance
throughout your life? Help them identify
needs from wants.
Birthdays are also a great time to talk
about saving. Help kids allocate their
monetary gift responsibly by talking
about saving, investing or giving
to charity.
LIFE INSURANCE
Words from the Wise
Grandparents can make a positive impact on their
grandchildren's financial future.
M
any older Americans know what it means to struggle and sacrifice. Hardships
from the past taught lessons of frugality and planning, which some worry their
children and grandchildren don't understand.
" The importance of saving has been lost by younger generations, " says John
Willoughby, a Sons of Norway Financial Benefits Counselor (FBC) from Helena, Mont. Too
often, people are tempted by shiny, new " bling " and put unnecessary purchases on credit
cards with high interest rates, he says.
While parents may be strapped for time and money, grandparents are in a unique
position to be financial mentors. " It's important to teach the difference between wants and
needs, " says Willoughby, a father and grandfather.
START A MONEY CONVERSATION
A 2014 TIAA-CREF Intergenerational
study finds that grandparents
underestimate the influence they have
on grandchildren's financial futures.
The study found that only 8 percent
of grandparents are likely to start a
conversation with their grandchildren
ages 18 and younger about money.
However 85 percent of young adults say
they are open to the conversation.
10 VIKING MARCH 2016 sonsofnorway.com
" Grandparents can look at the big
picture, " says Len Carlson, Director of
Agencies for Sons of Norway. " They
have already been through it with their
adult children. "
Get the conversation started by talking
with grandchildren about your financial
strategies by passing down personal
stories. They can learn from your
experience. How did you pay for your
first car or handle money mistakes
If you purchase life insurance on your
grandchild when they are a newborn,
you are guaranteeing insurability before
any medical conditions or disqualifying
circumstances materialize. A universal
life or whole life policy can build up
cash value over time and provide
the policyholder with the option of
purchasing more coverage at different life
stages, says Carlson.
" As they move through life - get a
job, get married, buy a house - they will
already have a good size life insurance
policy with the chance to grow it to
provide security for themselves and their
family, " Carlson says.
PROVIDING A LEGACY
If you have money you plan to pass on to
your heirs through your estate, consider
maximizing your gift by funding a single
premium life insurance policy. The
death benefit will be given to the named
beneficiary without going through
probate or being subject to income taxes.
While some grandparents buy
stocks or certificates of deposit with
of y 97%
oung people
worry about
saving for
their future.

http://www.sonsofnorway.com

Viking Magazine - March 2016

Table of Contents for the Digital Edition of Viking Magazine - March 2016