(This is Part 1 in a 3-part series of Talking with Your Adult Children about Your Finances. You can read Part 2 here.)
Should you be discussing your personal finances with your adult children? If you feel reluctant to do so, you’re not alone. Many people avoid or delay these types of conversations for any number of reasons including:
- Money is a taboo subject for many – this often is a result of family or cultural norms and how you were raised.
- Money is an emotionally-charged topic. Discussing money among family often invites conflict or stress.
- Parents often worry their children will count too much on a future inheritance if they know something may be coming their way.
Regardless of your own feelings, talking to your kids about your finances may be one of the more important conversations you’ll have with them. Why? Here are a few considerations:
- Starting the conversation opens the door for more discussion. Being proactive signals to your children that it is okay to bring up questions and concerns in the future.
- You may help your children improve their own finances and have the opportunity to teach them valuable money management skills.
- It addresses practical concerns such as what to do if your health declines and you’re unable to manage your own affairs or where to find key documents. You'll help your loved ones avoid unnecessary expense and time spent doing this on their own.
- It can significantly reduce or avoid future feelings of confusion, resentment and stress. By sharing expectations, family members can be on the same page and prepare accordingly.
If the idea of starting this conversation seems overwhelming, we’re here to help. As your advisors, we can facilitate a family meeting or simply serve as a sounding board for your ideas on next steps. Contact us or schedule a time to speak further about your specific situation.
Be sure to check back for Part 2 of this series where we’ll address exactly what you should consider sharing once you’re ready to start.
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