There are a number of reasons why parents might avoid bringing up money with their high school or college-aged children. Some don’t feel it’s appropriate to tell children about the family’s money in general. Parents may also find their children are uninterested in talking about money or planning.
However, engaging your young adult children in your family finances supports three things. One, it’s an effective way to teach your children about money management and financial independence. Two, they'll be better prepared to handle your finances in an emergency. And three, long-term planning as a family can help protect and grow the legacy you've worked hard to build and preserve.
Open communication is a big part of setting up your family for future success. Begin with low-pressure conversations and communicate early and often.
Here are some tips for getting started:
As with “Each One, Teach One,” these conversations can be a great opportunity to start passing on financial knowledge, especially if your children are not financially experienced. Share your tips on things like budgeting or talk about common money mistakes.
Ideally, your children will start to determine their own goals and financial identity because of your example. Establishing a common ground provides a foundation for ongoing communication and, eventually, wealth creation.
A financial professional can help you manage your financial plan and can be a great resource to help start — or elevate – family conversations, especially if you or your children are hesitant to bring up money.
A financial professional can identify what information is important and what questions should be asked and answered. Most welcome the opportunity to work with their clients’ families. As they form relationships with your children, they can assist them in developing their financial decision making skills.
Spending time talking about money and planning as a family can pass on financial knowledge, prepare for emergencies and build long-term personal wealth.
Learn about our approach to financial planning.