Home Breadcrumb caret Magazine Archives Breadcrumb caret Advisor's Edge Breadcrumb caret Planning and Advice Breadcrumb caret Practice When a client’s child receives a financial windfall Offer to introduce the child to investing or help the family manage By Gil Martinez | October 15, 2018 | Last updated on October 15, 2018 1 min read In the first 10 minutes of a meeting, your client says: Don’t forget: Emilia’s quince años* is next March. Save the date! She’s so mature. Our family usually makes cash gifts and she plans to save most of it. At that moment Ask your client how financially savvy her daughter is and if Emilia has specific plans for her birthday windfall. Later in the meeting Suggest that this is a good opportunity to introduce Emilia to investing. Offer to send some planning options for her to consider. Before your next meeting If you don’t attend the party, send a birthday card (but not a gift). Send the planning options for Emilia, and invite your client to bring Emilia to the next meeting for a learning session. At your next meeting Explain the different schemes you sent earlier, how they differ from one another, and what factors Emilia should consider. Consider setting up an informal trust, where parents are the contributor and trustee, and Emilia is the beneficiary (receiving her funds at age 18). Read more at advisor.ca/informal. Canada.ca has a financial literacy resource for teenagers developed by FCAC and the BCSC that could be a helpful starting point. Access it at bit.ly/teenfinancialeducation. *In Latin America, the celebration of a girl’s 15th birthday marks her entry to adulthood. It can cost as much as a wedding. Gil Martinez Save Stroke 1 Print Group 8 Share LI logo