Many families find it hard to talk about money.

Families tend to have topics of conversation considered to be off-limit or uncomfortable.

Sometimes, these are highly personal and include family drama.

Other times, the avoided topics are more universally uncomfortably.

Financial conversations can fall into both categories.

Discussing wealth management, financial planning, or future inheritances is important despite such discomfort. 

Parents should talk about money with their children.

Why Is it Hard to Talk About Money?

Although you may want to jump into talking about financial matters simply because doing so is essential, pausing to consider the reasons these topics could be uncomfortable can make the conversation more productive.

Money can be connected to deep and complicated emotions.

Many people feel guilt, embarrassment, or shame about their finances.

Parents may avoid the topic because they fear discussing money could impact the ambition or values of their children.

Adult children may believe that broaching the "money talk" might be seen as overstepping boundaries.

These emotional barriers must often be acknowledged before they can be addressed.

How can you navigate emotional landmines?

Be open and sensitive in your discussion.

Often, focusing on long-term goals over current financial situations can minimize stress.

How to Talk about Money with Your Children

Parents want their children to become productive and well-adjusted adults.

Some parents avoid money conversations because they do not want their children to learn about family finances, which can lead to a lack of a strong work ethic or sense of personal responsibility.

While these are certainly valid concerns, being able to talk about money with your children can be an opportunity to teach family values and financial responsibility.

Share what money means within your family.

Tell them about the reasons you work hard, your financial goals, and the effort it takes to manage assets responsibly.

This should be a discussion rather than a lecture.

You can prompt their critical thinking with open-ended questions about money.

Possible questions include "Why do you think financial planning is important?" and "What does it mean to be wealthy?".

How to Approach the Topic with Your Parents

Adult children can better support their aging parents if they understand their financial situations.

Even so, talking about money with senior parents can be intimidating.

While initiating these conversations is valuable, how you approach the topic is equally important.

Before delving into documents and numbers, ask your parents about retirement, long-term care, and other financial concerns.

Let them know your desire for the conversation is to understand and protect your wishes.

It will be helpful for your parents to have a plan for long-term care, a last will and testament, and possibly a trust.

If you are to serve as a caretaker or be granted power of attorney, you must understand their wishes, values, and financial plans.

Why Family Wealth Discussions Matter

Conversations around family wealth should involve more than net worth.

These discussions should include teaching values and how to use money wisely.

When discussing money with your loved ones, you can reduce stress by aligning plans with expectations and values.

Ensure the Financial Future of Your Family with a Thoughtful Money Discussion

As you and your loved ones talk about money and your goals for the future, these should be solidified in a comprehensive estate plan.

Working with an experienced estate planning attorney can give you peace of mind.

If you are ready to take this next step, request a consultation.

What are Key Money Talk Takeaways?

You should initiate conversations with your family before a crisis arises.

Despite any urgency you feel, the conversation should be grounded in respect and focus more on long-term goals than on the amount of wealth.

When discussing money with younger generations, ask engaging questions to encourage critical thinking around finance and values.

In addition to talking about money, you can best set your loved ones up for financial success through comprehensive planning with a seasoned financial advisor and an experienced estate planning attorney.

This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.

Reference: Morgan Stanley (2018) "How to Have Meaningful Family Conversations About Money"