Eight Essential Family Money Conversations
For many, money is the last thing they want to talk about with their kids and parents! Perhaps you feel it's taboo or rude to talk about finances. Or maybe it's just hard to get the conversation started. At the credit union, we know from experience that planning prevents financial outages in the future. We have created a list of eight essential items to get family conversations about money out in the open. Whether it's talking monthly expenses with your spouse or partner, teaching financial basics to your kids and teens, or writing a durable power of attorney for your parents, these are the money topics to discuss now, so you're not in a pinch later.
Money Conversations to Have with Your Spouse or Partner
"Where Does Our Money Go?": If you are not on the same page financially, you could end up overspending, misspending, and straining your relationship. Financial issues are a top contributor to relationship strains, including divorce. What to do first: Together, keep a 30-day spending journal that tracks personal and household expenses and work from there.
"Do we have an In Case Of Emergency Binder?": Life is fragile and unexpected events can happen to anyone at any time. Your IN CASE OF EMERGENCY Binder (ICE BINDER) will ideally contain in one place information on your accounts, insurance, finances, contact info, written will, and any other important financial documents. How hard would your loved ones have to track things down in the event of an emergency?
"Are Our Retirement Plans on Track?": How much do you need for retirement? If you and your partner do not have a plan in place, it's time to start now!
Conversations to Have with Your Kids
"That's not a need; that's a want." Determining what is and isn't essential now will help guide their spending habits for the rest of their lives. Consider setting your kids up with a savings account early on and allowing them to track the balance, so they learn about budgeting and saving.
The power of giving! Help your children understand that it feels better to give than to receive. Include your children when giving to friends in need or giving to a charity. You might also have your kids pick an issue they care about and set a goal for the amount of money they would like to save to give to a charity focused on that topic.
"Let's learn to manage your money." Let's face it - ending high school and transitioning to adulthood is a giant leap! Get your teen set up with the possibility of becoming financially stable and graduating from high school or college with excellent credit. You can help your teen open their own checking account with a debit card and pair it with a credit card to get used to money management while under your guidance. We created an award-winning Teen Program to help you do that!
Conversations to Have with Your Aging Parents
"Do You Have Enough to Retire Comfortably?" With many people living into their 80's and beyond, it is more likely that retirees will outlive their savings. Many adults end up contributing to their parents' finances. What to do first: If your parents are comfortable sharing, ask them what they have in place and offer support to help them get things in order if needed.
"Have you thought about future long-term care or medical treatment preferences?" Have they secured a living will (or advance directive) stating their preferred end-of-life medical care? Have they assigned a power of attorney for healthcare (also called a healthcare agent or proxy) in the event they're unable to make medical decisions themselves? Where to start? Start now during calm waters to avoid arranging these affairs during a medical crisis.