Living
Financial trade-offs, interest rates and the importance of having an emergency fund: Our current economic circumstances are full of teachable moments we can and should share with our children. After all, they are probably not learning these topics in school.
That’s why we’re equipping you with money tips and topics to discuss with the children in your life. Keep reading to get to the head of the class.
Are your children constantly asking you for money? One father found a way to nip that in the bud: He had his children sign a contract stating what expenses he would pay for, then gave them a set amount of money to spend each month for clothing, mobile phone bill and extras. “My son’s hard lesson came when his friend pushed him into a pool along with his phone. He learned why it’s important to build a reserve for unexpected expenses,” the father said. Giving your kids monthly pocket money allows them the chance to make financial decisions – and experience the consequences first-hand.
We’ve all asked a child, “What do you want to be when you grow up?” Instead ask what their interests are, and help them explore how they might be applied in a future career. This teaches them adaptability, something of value in a changing economic landscape.
As they get closer to making a decision about whether to attend university, take on an apprenticeship or enter directly into the work place, help them think through the costs and benefits. And if you have a child already attending college, know that timing is everything. Yale researchers have found that graduating from university in a bad economy has a lasting negative impact on wages – and many students are considering gap years and further education because of this.
Raise your hand if you want to raise a child who will hit the ground running when it comes to saving for retirement. Personal finance experts say we should let our children know that retirement is the biggest expense they will ever save for, and it is important to start early. To help them understand the value of compounding, help them open a savings account where they can experience the power of this phenomenon for themselves.
When you are young and don’t have much money, it is easy to rely too much on credit and jeopardise your financial future. Help your child understand the importance of a good credit score, and explain how you keep yours up. Share stories about how you financed your first car or house, and explain in concrete terms how the interest rate affected the overall purchase price.
– Have family or friends share stories of how they thrived during a recession or found creative ways to stretch a budget.
– Consider helping your child get started with investing.
– Introduce your family members – even the younger ones – to your Wealth Manager, who can act as a teacher’s assistant for financial literacy.
Black MondayOn 19 October 1987, the stock markets experienced a dramatic plunge that prompted many firms to shut down their trading desks and turn off their phones to minimize internal losses. Raymond James refused to do the same. Our desks stayed open to help meet clients’ needs, resulting in our first and only unprofitable quarter since the firm went public in 1983. |
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Who was Raymond James?The Raymond in our name is actually from Edward Raymond, owner of a 15-employee mutual fund sales group, Raymond and Associates, along Florida’s west coast. He sold his company to Bob James on 15 July 1964, on condition that the surviving firm be called Raymond, James & Associates. Three days after the sale, Ed Raymond was involved in a near-fatal automobile accident and never joined the firm. Nonetheless, even after Raymond had passed away, Bob James insisted that his name remain on the door – ahead of James’ own. That was a promise he made to Ed Raymond three days before the accident, and Bob James was a man who kept his promises. |
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Bear Market of 1974The severe bear market of 1974 threatened the existence of Raymond James, which was bleeding capital by the day. Tom James, his father and other leaders took extreme measures to keep the firm afloat, slashing costs, foregoing paychecks and even attempting to sell the firm for just enough capital to protect client assets and retain as many associates as possible. The story could have ended very differently if not for a sharp upturn and continued rebound in the stock markets late in the year. |
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Taking Raymond James PublicWhen consideration was being given to taking Raymond James public, Tom James penned a letter to shareholders (largely employees at the time). ” … the public offering should be considered as a statement of our independence. While this is a psychological rather than an economic rationale, it is nonetheless very important. We have asserted for some time that we are not interested in becoming a small part of a very large corporation. That assertion results mainly from the inclinations of management rather than the economic benefits associated with either alternative. The public stock offering affords us the opportunity to enjoy a little bit of the best of both worlds. While shareholders will be given liquidity at fair market value, we will still have the ability to control our own destiny.” After 40+ years of Tom’s leadership, upon becoming CEO, Paul Reilly was often questioned about whether the company might ultimately surrender its cherished independence and be acquired by some larger entity. His response: “Not while I’m around.” It’s a theme that continues today. |
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