by Aaron Mclaughlin

Created on: June 23, 2009   Last Updated: June 24, 2009

I believe we are debating two separate ideas here. Financial aid and inheritance need to be put into perspective. Inheritance can be many things including property, a house, a car, savings bonds, or money to name just a few. Financial aid is usually the short or long term lending of money with the expectations that it will be paid back.

Personally, both of my parents have passed away, and neither left an inheritance for me. However, growing up, when I needed help with something they would help out where they could. I do not consider the help they gave as being my inheritance. Are we giving our kids their inheritance when they are growing up and we buy their clothes, pay for their book rental, or pay for sports related items?

Because of this, I have mixed feelings. An inheritance should wait. This is wealth that a person has accumulated over a lifetime and wants to give it to someone when they pass on. While a person is still alive, the inheritance is still theirs to live off of if needed.

Financial aid on the other hand, should be given within reason when it is needed. This could be for college, a new home, etc... This financial aid should not be thought of as a free gift. Many times financial aid is required because a person was not able to manage their finances properly. Each case is unique and come under different circumstances. It may be due to natural disaster, loss of work, or medical reasons. Financial aid should be planned out not just handed out. Have a plan for what the money is going to be used for, and write it out on paper. Also, have a plan for paying it back or at least how it will be used as to not need more financial aid later.

Whether it's an inheritance or financial aid, people need to be taught better money management. Both my parents were never good money managers and we always lived paycheck to paycheck. I have only started learning how to manage my money in the last few years. This can be just as important as any other subject in school. It is usually not something you can just pick up, but need to be taught.

I would highly encourage to teach the person who will be receiving the money or inheritance how to handle and manage it. One way to do this is to give a small percentage of the inheritance and see how they handle it or what they do with it. Once you are confident that they can handle it, you can give more if you want.

Also, remember that age and time has a way of influencing the thinking process. If you give a kid out of high school or college a big bag of money, they will most likely do something different with it then a 30+ person who has a family and kids.

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