It’s always a tough talk to bring up financial planning to the family, Here are some ways to make it easier:
Have An “Official” Family Meeting About It
When you want to make a change in your family’s finances, have a planned-out family meeting about it and approach it straight on. Make sure you’ve planned out what you’d like to say beforehand, and try to keep it brief and direct. Keep the focus on what changes need to be made or where expectations need to be reset. And lastly, be ready and open for questions at the end.
Keep It Age-Appropriate
While you don’t need to go over every detail, provide enough information to help your kids understand the situation. Financial literacy is a very important lesson to teach, and starting to teach them now will make it much easier for them to understand financial responsibility later on. While there are more general rules about what children are old enough to know about, you know your kids best and what amount they’re ready for.
Talk To Your Parents Too
As your parents get older, having frank conversations with them about their financial situation becomes more and more important. While it might be uncomfortable, helping them manage retirement and old age is invaluable. As they get older, you will need to check in on them, so understanding their financial situation now can help inform your involvement later.
Have Regular Check-Ins
No matter what members of your family are involved, make sure you consistently circle back to stay updated on progress. Was this month great on the budget? Do your parents know how to access their retirement money? While the follow-up meeting might not be as big of a deal as the first one, but it’s important to make sure that the changes are taking place and making a difference.