Monday, August 08, 2011 Off to College? Don’t Forget Your HIPAA!
The hot and lazy days of summer are almost over; parents are thinking about back-to-school sales, kids are making the most of their final days of freedom, and college freshmen are getting ready to embark on their first year of adult-hood. Most of these college students have a list (whether mental or physical) of all the things they’ll need as they leave the nest for the first time, but most of these lists will be missing two key items: A Healthcare Directive and a HIPAA Form.
You may be wondering why a college student needs estate planning documents—aren’t those just for older, established people? Not at all.
Most incoming college students are now (or will soon be) 18, and considered adults under the law. This means that hospitals and medical personnel are no longer required to ask the parent’s permission before performing medical procedures. In fact, once your child is 18 health care providers are no longer required to share information with the parents at all.
Most college students (and parents) are unaware of this side-effect of turning 18, and parents and children alike can run into frustrating roadblocks should an accident occur. You can avoid these roadblocks by simply having your young adult execute the two simple documents mentioned in this blog post.
A Healthcare Directive (or Living Will)can be an in depth document or a very simple one, but the most important part for your new 18 year old will be the nomination of a healthcare agent. A healthcare agent is the person who will make medical decisions for your child if he or she is unable to make them alone.
A HIPPA Authorization Formaddresses the issue of security and privacy of health data. In a HIPAA form your child can list the people who have permission to receive information about his or her medical records and status.
For a fledgling 18 year old these two documents are of the utmost importance, and with the right help, they are very easy to execute. Don’t wait until it’s too late; make sure your young adult has these documents completed before they leave the nest. Friday, June 03, 2011 New Service Makes It Possible to Speak from Beyond the Grave
Séances, hauntings, ghost stories—we’ve come up with a number of varied and questionable ways to keep in communication with our loved ones after we pass away, but now there may be a way to actually do it: a new service called “P.S. I Love You Letters.”
According to their website, P.S. I Love You Letters are “time preserved, hand-written letters that you compose on elegant stationary to share what you've always wanted to say to those close to you, but never did. Each of your letters are safeguarded and later delivered in accordance with your instructions.”
Writing letters to loved ones to be given to them posthumously is not a new idea; in fact, many estate planners suggest clients write letters, personal histories, or a more formal document called a “memorandum of intent”, and store the personal missives with their estate planning documents, to be found and delivered after their death. The difference that comes with using the “P.S. I Love You Letters” service is that you can specify at what time you would like your letters to be delivered—and rest assured that they will be safely stored until that time.
We don’t know anything about this service aside from what we’ve found on their website, but as estate planners we certainly agree with the need to consider your family, plan ahead, and make sure you’ve provided for your loved ones before it’s too late. As the “P.S. I Love You Letters” website states, “We are reminded daily of how life can end so suddenly and unexpectedly.” Taking time now to plan for the unexpected can prevent much pain and hardship later. Wednesday, February 23, 2011 The Tax-Man Cometh
It’s that time of year again; the time of year when everyone starts gathering receipts, assessing income and expenses, and making appointments with tax advisors. Tax time can be a very stressful time for many families, but—with the help of this article from MSN Money—perhaps tax season can be made a little bit easier. The article lists 13 tax breaks from 2010 that can help save you money, including:
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The tax credit for first time homebuyers (if you’re not a first time homebuyer don’t give up, there’s a credit for existing homeowners too.)
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The parking and transit credit
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The college tuition tax credit
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The credit for energy-saving home improvements
And then of course there are the two we’ve been mentioning here on our blog for the past few months:
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The estate tax exemption, and
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The annual gift tax exemption
Of course, not every item on the list is going to apply to every reader, but if even one or two credits apply to you or your family it can be a huge help.
Don’t rely only on this article to ease your 2010 tax burden, your own advisors and tax planners—who know more about your family’s personal and business finances—will be able to give you much more in-depth advice on how best to address your own tax situation. In addition, talking to a professional advisor right now provides the perfect opportunity to tackle any issues in 2011, hopefully making this time next year a much happier and less stressful time for everybody. Friday, January 14, 2011 Government Rescinds Medicare Coverage of End-Of-Life Planning
Apparently the suspicion surrounding end-of-life planning is not as far in the past as we might have hoped. The recent Medicare regulation which would have allowed the government to pay doctors who advise patients on options for end-of-life care was rescinded only days after it was enacted.
Why such an abrupt turnaround? The reason is probably not too difficult to guess. Most people know that Medicare-covered end-of-life planning has a tempestuous history both in politics and in the media. This article in the New York Times stated that “while administration officials cited procedural reasons for changing the rule, it was clear that political concerns were also a factor.”
The alteration of the rule may be disappointing, but it shouldn’t stop you from thinking—or talking to your doctor—about your choices for your own end-of-life care. After all, this administrative change of heart does not alter the fact that having these discussions with your doctor (as well as with your health care agent and loved ones) preserve patient autonomy at a time when events may seem to spiral out of control. As National Public Radio pointed out in their article, “it remains perfectly legal for physicians to talk with patients during annual visits paid for by Medicare about how much or little care they want when facing a terminal illness.”
Media firestorms and political debate notwithstanding, your decisions about your end-of-life care are important. When you have these discussions with your doctor and loved ones, and when you have a living will or healthcare directive in place, you are far more likely to get the care you want at the end of your life, regardless of how invasive or restrained you want that care to be.
If you have reservations about what a health care directive might mean to your future medical care, or if you have any questions about this issue, please don’t hesitate to call our office. Your peace of mind is our first priority. Monday, January 03, 2011 Resolutions to Last You Through the Year
What are your resolutions for 2011? A majority of New Year’s resolutions have to do with money and health—or more specifically, with saving money and losing weight. Unfortunately, most New Year’s resolutions don’t last through the first month of the year. But what if there were steps you could take in that first month, when you’re still feeling inspired and motivated, that would pay-off throughout the rest of the year when all your good intentions fall by the wayside?
Luckily, there are steps you can take right now that will help you save money throughout the rest of the year. This article in USA Today lists 5 steps you can take right now to help you save money in 2011:
1. Order your free credit report
2. Get a medical exam
3. Update your beneficiaries
4. Increase your 401(k) contributions
5. Rebalance your portfolio
All of these will help you keep your 2011 resolutions throughout the entire year, but the ones we’re most concerned with are #s 2 and 3. Too many people “take care of business” pertaining to beneficiaries and 401(k)s when they first get hired (or open a new account or life insurance policy) and then never think of it again. But lives change over the years, and the people you listed, or the amount you contributed 5 or 10 years ago is probably not what’s best for your family right now.
The New Year brings with it new beginnings... and new hopes. Why not take advantage of this feeling of optimistic euphoria by taking steps now that will carry you through the entire year? Monday, October 25, 2010 “Nothing Says Romance More Than A Prenuptial Contract.”
You may have your doubts about the sentiment above (which is also the opening line of a recent article in the Wall Street Journal) but many couples are beginning to see the truth of this statement. Younger couples, older couples embarking on second marriages, and couples with family businesses or assets to protect are coming to realize that prenuptial agreements can actually take the pressure off a relationship, making more room for romance rather than less.
A recent ruling in Britain’s Supreme Court has thrown prenuptial agreements back into the limelight, not only in the U.K. and Europe, but also here in the United States. The above-mentioned article in the Wall Street Journal offers a few basic guidelines for couples considering drawing up a pre-nup, the most important of which include: there must be no signs of duress, each party must have their own legal counsel, and nothing concerning children can be fixed in a pre-nup.
But if you’re on the fence about whether or not a prenuptial agreement is right for you and your spouse-to-be you may be most interested in the final paragraph of the article, which states that “Prenups are romantic... You’re making a provision for somebody. You’re saying, ‘I want you to know now that you’ll be alright’... this should be part of the process of falling in love and going forward with that commitment.” Monday, October 18, 2010 Can You Foolproof Your Power of Attorney?
“The best laid plans of mice and men often go awry.” Although we hate to admit it, this statement will also sometimes apply to estate planning; and more often than we would like, it happens with powers of attorney.
A power of attorney is the document in which you nominate an agent (or attorney-in-fact) to make financial decisions and take legal action for you when you are incapacitated or otherwise unable. (This does not include healthcare decisions, covered in another document called a health care directive.) Unfortunately, as this recent article on the Elder Law Answers website points out, “many people experience difficulty in getting banks or other financial institutions to recognize the authority of an agent under a power of attorney.”
This difficulty usually has nothing to do with the validity of the document; rather, it is the bank’s attempt to protect itself. But while a little bit of caution is understandable, it can have frustrating—or even tragic—results if not addressed. Luckily, there are steps you can take to improve your chances of having your power of attorney honored. The article mentioned above includes a number of good suggestions:
· Talk to your bank about your plans ahead of time.
· Ask your financial institutions if they have any requirement for powers of attorney, or even their own standard form.
· Update your power of attorney forms or documents frequently (every 2-5 years.)
Talking to a representative from your bank every 2-5 years may seem like an inconvenience now, but imagine the inconvenience if you are incapacitated and your agent is unable to access the funds he or she needs to pay your bills, make your mortgage payment, or provide for the needs of your family. A little bit of time spent now can save a mountain of stress later on. Friday, October 08, 2010 10 Phone Calls to Make After the Death of a Loved One
Coping with the death of a loved one can be a crushing task. There are so many things to do and details to remember; all of this at a time when each small task can serve as a reminder of your loss. At such a time it can be helpful to know that you’re not going through this alone; there are a number of people who can help when you begin to feel overwhelmed. To relieve some of the stress, and help ensure that no important task is forgotten, we offer a list of people to call after the death of a loved one:
Funeral home -This will likely be your first call. The funeral home you or your loved one has selected will be able to help you with a lot of the immediate details and tasks. The funeral director will also be able to help you obtain 10-20 copies of the death certificate, something you will need later.
Family and Friends -This probably goes without saying. Not only will you want to notify family and friends, but they can also help with a lot of the endless tasks and overwhelming details. Don’t be afraid to delegate.
Veteran’s office (if deceased was a Vet.) -If the deceased was a Veteran you may have to stop benefit payments; you may also be able to get assistance with the funeral or memorial service.
The deceased’s employer -You will need to do this not only to inform the employer of the death, but also regarding termination of health insurance.
Attorney or Tax Professional -You will need to know what to do about probating the deceased’s estate, filing tax returns, dealing with bank accounts, etc. An attorney or tax professional can help. It is especially important to find out if your loved one had any existing estate documents.
Office of Social Security -If your loved one was receiving benefits you’ll need to stop payments. You will also want to find out if survivors are entitled to any benefits.
Insurance company of the deceased –You will probably need to file a claim. This is something your attorney or accountant may be able to help with.
Local Newspaper -You’ll want to publish an obituary or notice of death, as well as information about the funeral or memorial service.
Credit card companies and utilities -Give notification of death and pay off any remaining balances.
Bank -Arrange to change any joint accounts or to open an account in your name. Do not close any accounts right away!
Although this list is a good starting point; a complete list of people to call and things to do will depend on where the deceased lived and the details of their estate. Contact your loved one’s estate planning attorney (or your own) to ensure that nothing is left to chance. Wednesday, September 01, 2010 You’re Never Too Young to Need a Financial Planner
Most people don’t think about visiting a financial planner until they’re old enough to have some money to manage, but if your child is a recent college graduate, or in his or her final year, you may want to consider a joint trip to your financial planner. A recent article in the Boston Globe lists a number of very compelling reasons why even young adults with little or no savings can benefit from a little bit of planning.
1. A visit to a financial planner can help young adults learn early the importance of budgeting: “If you are living on your own for the first time you haven’t had the responsibility yet of paying bills and learning to make your paycheck last until the next payday... One of the basic tenets of financial planning is to know where your money is going.”
2. Start planning for retirement while you’re still young.The earlier you start, the better off you’ll be. “A financial planner can go over the various fund choices in your 401(k) or other retirement plan and help you choose one or more funds that suit your needs.”
3. Learn how to turn big dreams for the future into a reality. Whether you plan to get married, buy a house, or start your own business, “A Certified Financial Planner® can figure out how much you need to save and create a plan to make saving painless.”
4. And finally, a financial planner can help young adults learn the basic tenets and terminology of borrowing, lending, saving smart and paying off loans with interest. “Learn about interest rates and how they work, whether they are for credit cards, auto loans, student loan or other borrowing. See how compound interest can help you reach goals faster.” An early trip to a knowledgeable professional can ensure that your child doesn’t get taken in by persuasive credit card companies. Monday, June 07, 2010 Money and Marriage: How to Have a Successful Business Partnership with your Spouse
If you and your spouse complement each other, work well together, and support each other, does it makes sense to go into business together? Can you effectively be partners in marriage, partners in parenting, and partners in business? Although it may not be easy, many couples have proven that the answer is yes—a business partnership with your spouse can be very rewarding.
As rewarding as it can be, there are a few steps that must be taken in order to protect your partnership—inside and outside the office:
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Have a detailed plan that you both agree on
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Be specific about each of your job descriptions to avoid stepping on each other’s toes
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Agree on the amount of risk you are both willing to take
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Know each of your strengths and weaknesses
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Have a safety net
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Be sure you are both contributing to your own retirement plans
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Don’t skimp on the paperwork; have an attorney draft the documents you need to protect your business and your personal assets
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Plan personal time together when work is “off-limits”. Vacations, regular date nights, a business cut-off time—all of these can be helpful in setting boundaries and preserving the romance
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Hope for the best, but plan for the worst: have your attorney help you draft a buy-sell agreement in the event that one (or both) of you someday wants to gracefully step down
Being in business with your spouse can be paradise or perdition, and at times it will probably be a little of both. Each family—and each family business—will be different, and our office can help you navigate the tough legal terrain to find the best fit. Being prepared and taking the right legal steps will bring paradise a little closer by allowing you to relax and enjoy what you and your spouse have built together. Whatever your arrangement, don’t neglect the future. In business, having a good plan is the best protection there is. Wednesday, May 05, 2010 Does the New Health Care Reform Affect Your Long Term Care Plan?
From a recent announcement on PR Newswire:
“Many Americans seem confused and immobilized by a key part of the recent Health Reform legislation, the CLASS Act, which will offer a form of long term care insurance for working people and others who may become disabled. ‘CLASS’ stands for Community Living Assistance Services and Supports, and the program, a legacy of the late Senator Edward Kennedy, is intended to offer new choice and security for millions now at risk. But, ‘we find that the public doesn't know how to react,’ says Denise Gott, Chairman of the Board of LTC Financial Partners LLC (LTCFP), one of the nation's most experienced long term care insurance agencies.”
The new Health Care Reform will almost surely affect your long term care plan, but is it too soon to know exactly how? You don’t want to be caught without coverage, but you also don’t want to make any decisions without having all the facts.
To help you discover how health care reform may affect your long term care plans, the link above provides access to a newly released 2010 Long Term Care Guide complete with healthcare reform update. Don’t let your family be caught off-guard. Friday, December 11, 2009 Will Nursing Homes Bankrupt the Nation?
Along with the rest of the nation, you are probably watching the progress of various versions of the health care legislation making their way (or not making their way) through Congress. Today’s New York Times points out that the current bill contains a “major new federal insurance program for long-term care” — although many are not aware of it.
Should it become law, the program might have a significant effect on a problem that is already bad, and promises to get worse. That is, how are we to care for members of our society who can no longer care for themselves, but might live for years? To give just one prominent example, former President Ronald Reagan revealed his Alzheimer’s diagnosis in 1994, but did not pass away until ten years later.
Nursing home costs have the potential to bankrupt families that are not prepared with legal planning. Drafted by the late Sen. Edward M. Kennedy several years ago, this federal insurance program might be an important tool in addressing the problem, but critics say it will be unsustainable. Instead of families going bankrupt paying for nursing home care, it will be the government, in their view. Read the entire article here.
Friday, December 04, 2009 Tax Moves to Make Before the End of 2009
Why do people give so many charitable gifts in December? The holiday spirit may not be the only thing inspiring people to give to the less fortunate this month, it may also have something to do with lowering your 2009 tax bill. If it’s taxes you’re worried about, there are a few other moves you can make after you’ve done your charitable giving. Ashlea Ebeling of Forbes has a whole list of things you can do to lower your 2009 tax bill before year’s end, we’ll mention just a few of them here:
- Fund those retirement savings accounts. As the article above points out, you can fund your 2009 retirement accounts up until April of 2010, but if you have an employer who will match your investment it’s likely they’d like to know before the end of the year what amount they’ll be matching. If you’re self employed you’re on a tighter schedule because the deadline for setting up a solo 401(k) is December 31.
- If have plans to receive any expensive medical procedures in the near future that won’t be covered by your insurance, you may want to consider having them done before January 1st. Unreimbursed medical expenses that exceed 7.5% of your adjusted gross income are deductable.
- If you’re in the market for a new home, the homebuyer credit has been expanded from November 30th to May 1st 2010. This credit used to be only for newcomers to the real estate market, but is now available for both new homebuyers and longtime homeowners looking to purchase a new home.
- A different—but related—course of action is making upgrades to the home you already own. Certain energy efficient improvements to your home can also get you a credit on your taxes... if you get the improvements done before the end of the year.
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One more way you may save money on your taxes this year that you won’t find mentioned in the Forbes article is to create an estate plan which includes a trust. To the extent that the legal planning services cover tax advice or regard income producing property, the fees you invest in establishing and operating a trust are deductible from your federal income taxes.
All of these are good ways to save money on your 2009 taxes, but action needs to be taken before the end of the year. That gives you only... 24 days left to take action!
Wednesday, November 25, 2009 In This Season of Thanksgiving...
The days are getting shorter, the weather cooler, and the skeletal arms of trees reach for the skies as their colorful apparel rests on the ground. All of these signs point to just one thing... No, not the estate tax repeal (although that does loom close); I’m referring, of course, to the upcoming holiday season—a time to slow down, spend time with family, and appreciate the blessings in our lives.
During this time of celebration and Thanksgiving, our office would like to offer our sincere thanks to you, our clients and readers, for the time you have spent with us, the trust you have put in us, and the role you have let us play in your lives. We hope we may continue to serve you in the coming year.
Happy Thanksgiving to all of our readers, and may you enjoy a wonderful holiday season.
Wednesday, November 11, 2009 More than Just “The Death Lawyer”
Everyone knows that the estate tax is also sometimes known as “the death tax”; similarly, estate planning attorneys are also sometimes known as “those death lawyers.” This is something most of us have learned to good-naturedly roll our eyes at; but eye-rolling aside, the worst thing about the “death lawyer” assumption is the disservice it does to you—our clients. You see, as estate planning attorneys our role is to help you protect your family and your assets, both of which exist in the here and now, not in some ethereal “someday”. What follows are only a few of the things we can help you with right now:
Retirement planning: Ask about the recently developed Retirement Trust, which not only extends your retirement fund past its initial payout date, but gives you more options for distributions.
Saving for college: If you have children who will one day be in college, we can help you make sure they will have the wherewithal to follow their (and your) dreams for education in the event that anything happens to you. An education trust is the perfect way to provide for your children’s schooling.
Investing for the future by laying a foundation NOW: The future is the business of an estate planning attorney, whether it be protecting your life insurance policy for your family, saving your property from probate fees, or minimizing your taxes; but neglecting to prepare now means it may be too late when the time comes.
Yes, as estate planning attorneys our specialty is going to be helping you prepare for your inevitable death (which will take place sometime far in the future, of course) but one thing we know for sure is that the best way to prepare for the future is by taking action in the present. Family, finances, health and education—all of these are within the realm of the “death lawyer’s” expertise, and all of these need your attention today. Let us help you with the things that are important to you and your family right now.
Wednesday, October 14, 2009 Alzheimer’s Disease Can Take Your Memory AND Your Financial Security
Alzheimer’s disease affects as many as 5.3 million people in the United States; which means it affects as many as 5.3 million families, because Alzheimer’s is a disease that affects everybody it touches—husbands, wives, children and grandchildren—they all bear witness to their loved one’s slow demise.
Sadly, emotional stress is not the only stress that accompanies Alzheimer’s disease; those loved ones serving as caretakers may carry a huge amount of financial stress as well. According to this article by Denise Bonilla the cost of caring for an Alzheimer’s patient can run anywhere from $64 a day to $77,380 a year, and because Alzheimer’s disease can be such a long-lasting disease (a person can suffer from Alzheimer’s for up to 20 years) the costs of care can end up being astronomical. It’s obvious that people can’t do it alone.
Some of the options to help Alzheimer’s patients pay for medical expenses are long-term care insurance or Medicaid (Medicare doesn’t cover the cost of long-term care). Long-term care insurance can be very helpful… if you’ve thought ahead and purchased the policy before you or your spouse began suffering from symptoms of Alzheimer’s. As for the government programs, those also can be helpful… if you fall in the right category and know how to navigate the complex system.
Unfortunately, learning how to navigate the system is not something you can do in an hour or two. Because your experience will depend on a number of unique factors we can’t give you an easy set of instructions to follow. The best advice we can give is to say that right now, the best way to navigate the Medicaid/Medi-Cal system is to find someone who knows the system to assist you. Most estate planning and elder law attorneys help their clients with these issues on a regular basis. If you want to ensure that you and your loved ones will be cared for no matter what the future may bring, don’t be afraid to ask your attorney for help.
Monday, September 14, 2009 A Guide to Taking Care of the Details After the Death of a Loved One
“The death of a loved one imposes cruel demands on the closest survivors.” The truth of that statement from this article in moneywatch.com is known to anybody who has lost a close friend or family member. We’ve written a lot on our blog about going through the probate process when a loved one dies, but probate isn’t the only thing you have to think about; in fact, it may not even be the first thing you should think about. At a time when you are bombarded by as many emotional demands as you are mundane demands, how can you know what to do first?
The article mentioned above contains a helpful guide for those who are dealing with loss. It includes well-known items such as “contact close friends and family” and “make funeral arrangements” as well as items that may not come to mind as naturally, such as “write an obituary” and “contact the deceased’s employer.” Few people think about these things when under emotional strain, which is why this list is an excellent resource to file away for a time when it may be needed.
If you are having a particularly hard time with the grieving process don’t be afraid to ask others to help with the more difficult items, or to hand the list over entirely to someone else. This is when your own probate or estate planning attorney (or the deceased’s attorney, if they had one) can be especially helpful.
Although it sometimes feels as if time should stand still when someone we love passes away, life does go on, for better or worse. But the world is full of caring and knowledgeable people to help you through the process… if you only know where to look.
Monday, August 17, 2009 Finances Are A Family Affair
We’ve all been learning a lot more lately about economics and investment practices than we ever thought we would… but do these lessons from the global economy transfer to the family circle?
Studies have shown that most families have one person who takes care of all the finances: paying the bills, setting aside money for investment and savings, planning the family budget, etc. This may be convenient in the short term, but it can create long term problems. If both partners aren’t aware of the family budget and financial status there can be a tremendous disconnect in spending habits, leading to resentment and often a slow decline into debt. Furthermore, what happens to the family finances if the “accountant spouse” dies or becomes incapacitated? The surviving spouse often has no idea what the family financial status is, or even where accounts or investments are located and how to access that money. The best solution is for couples to talk about their finances often, or take turns being the family CFO.
Even children benefit from a certain amount of involvement in the family financial planning. Having a regular allowance or earning pocket money for chores not only teaches kids about money management, but also helps them understand when they have to wait to get that new video game, or when the family may have to cut back on certain luxuries. Including children in certain financial decisions, such as which charities to support or how to spend surplus cash, teaches them accountability, and that the choices they make can have a lasting impact.
Many of us look upon our finances with dread; but it doesn’t have to be that way. Skill with money matters can bring us just as much pride and joy as skill with a paintbrush, tennis racquet, or any other skill that must be acquired with practice and hard work. With a little education, and the involvement of the entire family, we can all become the masters of our own financial futures.
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