The information from this article is based on an interview with Garth Thomas from TOMCO Financial Services Ltd on the Straight the BATT live show. He is the Executive Director of his three companies, Comprehensive Planners and Associates Ltd, GTESCROW SERVICES LTD and TOMCO Financial Services Ltd. He is also a Facilitator of the Central Bank’s National Financial Literacy Program.
According to Garth Thomas, there are three critical elements of a financial plan which includes identifying specific goals, available resources that you can mobilize to achieve those specific goals and the timeline within which you’d want to achieve those goals. Ultimately, financial planning is a structured step-by-step process for taking action to get where you want to go.
Here are three considerations for financial planning as a family:
- The Family is an Incubator for Learning
The family unit is essentially the first ‘school’ that any child will experience. Therefore, whatever behaviours and habits children witness from their family members within the home, they will likely exhibit the same as they grow. As a parent, it’s in your children’s best interest for you to stay away from the “do as I say, not as I do” mindset when it comes to money and model sound financial practices in front of your children.
- Create an Open Forum to Discuss Money & Money-Related Matters
Some family members may be hesitant to discuss money for several reasons. However, it is wise to create an environment where everyone in your home feels comfortable and safe to discuss money-related matters openly and without judgment. Simple decisions about spending and saving can be shared and will reduce the tension surrounding money-related conversations in the home.
- Make financial planning fun
There are several games that you can play together, as a family, which teach financial skills and planning. For example, the Cashflow Classic game which was created by Robert & Kim Kiyosaki. This board game makes learning financial skills such as investing enjoyable for everyone.
Want to learn more about smart financial planning for families in T&T? Check out our video below:
This article is based on a discussion with Garth Thomas on the Straight off the BATT Live Series from the Bankers Association of Trinidad and Tobago. The show aims to help you understand financial literacy and education. Join our mailing list, here.