Ideas from Laurie Geschke
Managing finances is a crucial skill for everyone, but it holds special significance for people with disabilities. One effective tool in promoting financial independence and long-term security is the Registered Disability Savings Plan (RDSP). Here’s how you can make this tool more meaningful and concrete for someone managing their own RDSP, based on our family’s positive experiences.
Opening Up the World of Finance
Start by involving them in the process of managing their RDSP by letting them open their mail, such as bank statements. This simple act can be empowering. It gives them a tangible sense of ownership and responsibility over their finances. In our family, we do this with our daughter’s credit card and RDSP statements. It’s not just about seeing the numbers but understanding what they represent.
Learning to Read Financial Statements
There’s something incredibly rewarding in watching someone learn to navigate their financial statements. When our daughter’s RDSP balance first exceeded $100,000, it was a significant milestone. She learned to read that large number, a skill that was both practical and confidence-boosting.
Teach them to identify key pieces of information:
- Statement date: When the statement was issued.
- Starting balance: How much money was in the account at the beginning of the period.
- Closing balance: The amount at the end of the statement period.
These are basic yet essential details that help them understand the flow of their finances.
Discussing Financial Growth
It’s also beneficial to discuss the changes in the account balance. Our daughter can now tell whether her assets grew or if she lost money over the statement period. While we don’t delve into complex financial analysis, recognizing these trends is a foundational skill.
Understanding the Purpose of RDSP
An important aspect of managing an RDSP is knowing why it exists. Just like parents might save in a Registered Retirement Savings Plan (RRSP), an RDSP is designed to provide for her future. Explain that this plan is to ensure they have resources when they are older, securing their retirement just as you are securing yours. This helps contextualize why they are saving and what these funds will mean for their future.
The Joy of Financial Literacy
Watching our daughter grow in her financial understanding has been a joyful journey. It underscores the importance of starting these conversations early and revisiting them often. Each discussion is an opportunity to build more knowledge and confidence.
Conclusion
Involving your loved one in their financial management through activities like reading RDSP statements can do more than just teach them about money—it can empower them. These activities provide them with the tools they need to make informed decisions about their finances, fostering a sense of independence and confidence that will serve them well throughout their life.
A personal note from Laurie:
Keep letting them open their mail, and continue to read their bank, credit card and RDSP statements and build dreams with them. Don’t stop. We’ve been doing this when the statements arrive for over a decade. It has given both myself and our daughter peace of mind about her financial future, and what could be better than that — for both of us!Who knows? Later, they might even want to play with the RDSP calculator on RDSP.com