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.