Finance for Families

Honest Conversations About Money

Have you noticed that awkward silence at the end of your night out with friends? It is a short story – the bill, then silence, then uncomfortable! Yeah, we’re going to have that ‘honest’ money talk. *You’re welcome! *

Financial discussions are a very uncomfortable topic to be involved in, especially at the dinner table with your family or friends. 🙁

Often seen as a difficult discussion that brings a weird vibe, family conversations around finance help put you and your loved ones on the same page and prevent unnecessary future debt.

Here are some tips on how to have these awkward but honest conversations with your family:

With Mom and Dad 👫

These conversations are essential to understanding your parents’ plan. You can discuss things like wills, retirement plans, long-term care plan, and about who they would like to make financial decisions for them in a situation when they lose the capacity to handle their own money. These conversations relieve both you and your parents from any related stress and anxiety and help to build trust.

Okay, let’s break down how to have these conversations:

Regular check-ins 🧐

You live with your parents and noticed the electricity bill or other utility bills had not been paid for a month, and things are starting to spiral out of control. This is the best time for you to have the “money talk” with your parents or offer a helping hand.

These regular check-ins will help your family gain financial control. Don’t wait for an emergency to have these discussions. Most importantly, avoid making important money decisions under emotional, high-stress conditions. Keep it for another day.

Family meetings 👨‍👩‍👧‍👦

Family meetings with a financial advisor can make these discussions less awkward, honest and down-to-business. You can ask your parents for financial help and invite them to meet with your financial advisor.

The adviser can start a conversation with smaller concepts, and you can join him/her to tackle more complicated topics like health care and old age planning. Remember – you need to approach financial conversations with parents with respect and love to get a valuable response.

With the Kids 👧

Your kids learn about money from you just like you learned from your parents. Depending on the kid’s age, get down to more details about the family’s financial situation. Teach them about money, budgeting and the importance of savings. You can also help them budget their allowance for a more personal, hands-on experience.

Here are a few tips to make these conversations easier:

Make it a conversation, not a lecture. 🗣️

These conversations are much more effective if your tone doesn’t mimic a lecture. Your children’s participation is paramount. Encourage them to ask questions and answer them in a way that is easy for them to understand.

Use real-life lessons 👩‍🏫

Real-life examples are more effective than conversations. You can open for your child a savings account and teach them all the benefits of having one. You can give them a monthly allowance for them to learn managing money, keep track of their spending and understand the importance of money at a young age.

With your Spouse 💑

Whether you’re married or in a committed relationship, you tend to share finances with your partner. These discussions put you and your partner on the same page and help avoid any significant arguments over money in the future.

Having this conversation should be much more comfortable with your partner than your parents. Start with questions like: where do you want to live after retirement? How do we increase our savings? How do we pay off our debts so that we can start working on our dreams as early as possible?

These discussions are likely to strengthen your relationship as well, instilling a sense of acceptance and belongingness. Questions like this help you to have an honest conversation with your spouse and build trust and a healthy relationship.

To wrap up, financial discussions, in a way, improve communication between you and your family members. Being honest about money shows you trust, care and love them. “No more awkward moments with money” for you and the fam.

All you need to do is gather the fam and talk it through! 😌

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