Doing this can help younger family members develop a variety of skills, including communication, negotiation, shared decision making, leadership, accountability, investing and financial literacy.
Studies have shown that individuals receive many of the same personal benefits from charitable giving regardless of the amount of money that they actually give.
Conversations about charity have a greater positive impact on children than parents simply demonstrating their own philanthropic activity.1 This conversation is worthwhile, regardless of the child's age.
To maintain a good program over time, you should: choose projects based on shared values; involve the whole family in decision-making; measure and evaluate results; and apply what you've learned to future decisions.
1Dunn, E.W., Aknin, L.B., & Norton, M.I., "Spending Money on Others Promotes Happiness," Science (2008)
Based on articles by Justin T. Miller, J.D., LL.M., TEP, CFP®, National Wealth Strategist at BNY Mellon and adjunct professor at Golden Gate University School of Law. Edited and reprinted with permission from WealthManagement.com.
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