Have you ever wondered how becoming a grandparent might change your perspective on money and legacy? The latest episode of the Money Wisdom podcast features Joel Johnson, CFP®, who has recently become a grandfather for the second time. His insights into the financial planning world, coupled with his new role in the family, provide a unique and heartwarming perspective on managing wealth for future generations.

We want to explore the deeper question of how to instill financial discipline without depriving the next generation of opportunities. Joel reflects on his own upbringing, his approach to raising his four sons, and how his financial strategies have evolved with the arrival of his grandsons. It’s so important to teach children the value of money, the practicality of matching their savings for significant purchases like a car, and the delicate balance between helping and enabling.

Instilling those lessons early can plant the seeds for financial success later in life. Sometimes that’s easier as a grandparent because you approach the relationship a little differently than when you’re a parent.

Grandparents also help with education expenses. Everyone asks about 529 plans and whether it’s something they should start as soon as a grandchild is born. As Joel points out, there aren’t many negative consequences in contributing to that 529 plan as soon as possible and letting it compound over 15-20 years. Even if you don’t get the tax benefits that come with spending it on education, you will still have another account that you can utilize on something else.  

He provides a candid look into the concerns wealthy families face when deciding how much financial support to provide to their children and grandchildren. The conversation touches on the potential pitfalls of overindulgence and the importance of allowing young ones to face challenges that build character. It’s something we discuss with our clients as they think through their legacy plans.

But this episode goes beyond the numbers; it explores the emotional and relational aspects of financial planning. Joel’s experience and advice serve as a reminder that managing wealth isn’t just about ensuring financial security—it’s about passing on a legacy of wisdom, values, and the ability to navigate life’s financial journeys.

Here’s some of what we discuss in this episode:

• Some things Joel wants to do with his grandsons that he never thought about doing with his sons.

• The best approach for helping grandchildren with educational expenses and whether a 529 plan is the best route.

• How to approach your legacy plan when you have significant assets to pass along.

• Situations where parents have negatively impacted their kids with the way they’ve approached finances.