While money is not a typical dinner table topic for most families, we think it should be. This is surprisingly true when it involves affluent parents. We hope to change this. Talking to your children and parents about money is one of the most important things you can do.
Only 17% of affluent parents said they would disclose their net worth and/or income to their children by the time they turned 18, according to market research group Spectrem Millionaire Corner. Adversely, 18% said they would NEVER disclose those figures to their children. When Spectem asked those wealthy parents why they would not speak with their children about money, the response was “it’s none of their business.”
Hopefully you agree that is faulty thinking.
Your family’s money and what will happen to that money in the event of their death or incapacitation may be the most important business you have. Your parents’ money can have a huge impact on your life – whether they talk about it now or you figure it out after their death.
That also means that your money will have a huge impact on your own children.
There are a few reasons your parents may not be talking to you about money. They may be worried that if you find out, you’ll become lazy and unmotivated, or start making negative life decisions. It could be that you have the same fears with your own children.
It is likely your family’s affluence has already influenced your life in a variety of ways, whether you know what exactly is there or not. An open conversation is the best way for your family’s assets to positively impact your decisions.
If you are a child of wealth, open up communication with your parents in a way that will encourage trust and insure them you will make responsible decisions when you know how much there is.
It’s a possibility that when the topic has come up in the past, you behaved in an immature manner, causing your parents not to trust you. You can change that and show your parents evidence of your maturity.
If you’re a parent, it is likely your most important wish for your children is the ability to handle money well and to be a positive influence on them when it comes to money.
With thinking of how to start the conversation with your parents, consider how you would prefer your own children begin the conversation with you.
We will all find out about our family’s wealth eventually. It can be a much bigger burden should we have to wait until our parents’ deaths. On top of that, we may miss out on big opportunities for passing more than just money.
As a wealthy parent or child of wealth, starting the conversation about money should be seen as an opportunity to pass on insights, values, stories and experiences. These opportunities can be lost if you wait until death or incapacitation.
Helping you start the talk with your parents or children about finances is one of the things we love to go most. We see this as an opportunity for your family to come together and create a connection from one generation to the next. If we can help you start this conversation with your parents or your own children, please be in touch.
This article is a service of The Solution Law Firm, P.A. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Planning Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Planning Session and mention this article to find out how to get this $750 session at no charge.
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