Updated: Oct 6, 2020
By Latasha Ford
As the saying goes, “Sometimes all you need is a leg-up.” For black families, more often than not, this is most certainly the case. Many Black parents (especially within single-parent households) feel like a little extra help is exactly what they need to get ahead. In comparison to other races, the struggle seems to be harder and more exigent for black families to leave a legacy for their families or at the very least keep afloat. Although it may not come easy, something as minuscule as a change in your mindset can make a significant difference in the Black household. For instance, educating yourself on and being more attentive to some of the disadvantages Black families are faced with, can help change your approach. In hindsight, something as simple as lending helpful advice and substantial tips to others can help make a tremendous difference.
It's time that Black families get back into the mindset of leaving a LEGACY behind!
Legacy means something different to many. But, in this case, it goes hand-in-hand with financial stability. Let’s have some candid conversation! How often are we taught the many avenues to best prepare our black children for a secure financial future? There are many ways for parents to help set their child(ren) up for success and some people are simply unaware. Here are 6 ways to ensure your children have a leg-up in life:
1. Leave a business and/or company behind for your children.
Leaving a business and/or company behind for your child and teaching them the the industry is one of the keys to providing them with financial well-being. Being in a position to provide this type of foundation is something that every child needs, especially those of minorities. Leaving a legacy, such as a family business behind provides long-term security and also a head start on life for your child.
2. Invest in property and/or land.
As most already know, there are three main things needed in order to survive in life: food, shelter, and clothes. That said, the best legacy that any parent can leave behind for their child is a home (or investment property). If purchasing property is of option for you as a parent, this is surely an area to be explored. Property can be left behind and passed down throughout the years to come. There are logistics involved when it comes to owning and passing down property that every parent should be aware of. Such as, listing the property in your will and being sure to include the right words in the deed to your home.
3. Designate a Guardian for your Will.
It’s vital that you are knowledgeable about the difference between deciding upon a guardian to look after your child versus a guardian to look after your assets. Thus it’s very important that this part is strategically well thought out. Ensuring a solid will is in place for your children should be of high priority for any parent.
4. Make sure you have a substantial life insurance trust/policy for your children.
It can be uncomfortable to discuss life insurance policies due to the many facets associated with such. The initial thought which immediately comes to mind when you hear the term “life insurance” is death. Whereas there is much validity to this; the most important part to focus on should be overall security for your children. Life insurance policies are a means to ensuring that you have properly put the right things into place for your children in the event you are no longer here.
5. Leave behind Stocks, Roth/Custodial IRAs, Pensions, and a 529 Savings Plan.
There are many misconceptions associated with investing. The average Black family is often under the impression that a ton of money is necessary in order to invest. That couldn’t be the furthest from the truth! There are a ton of resources available that educate parents on what steps to take in this area. There are countless ways to ensure that your child has financial stability. Purchasing stocks, investing in pensions, and savings plans are huge steps in the right direction.
6. MOST IMPORTANTLY, leave behind a roadmap for your children to do the same for their children in the future.
The only way to keep making steps in the right direction is to pass down the legacy! Educate your children by having those transparent conversations that most prefer to steer clear of while you are still here. Talk to them and leave those golden gems behind with your children to ensure their children also have the same leg-up in life.
Image by Pixabay
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