3 Tips for Families to discuss money
Noble Capital Group LLC
To Inspire and Develop opportunities for Families To Transform Generations Through Planning & Wealth Management
3 Tips for Families to discuss Money
I can tell you one thing for certain... When we went over our bound financial plan in 2018 with our financial goals and hopes listed, it did NOT include delivering our first child into the world during a global pandemic. Fast forward four years and we also know now what parents go through when rushing to the emergency room followed by admission to the Children’s Hospital. That said, how can newlyweds to those celebrating thirty years find success in their discussions of money? Here are three observations after working with clients from 22 to 87 that you can implement today with your loved ones.
Be Honest.?We all have areas?in our life that can be improved, personally and professionally. In a recent post by The Atlantic, Americans are more comfortable “talking with friends about marital discord, mental health, addiction, race, sex, and politics than money.1” So, I encourage you not to just be honest but to open up with your family regarding your concerns. We recently uncovered marital stress from the sale of a rental property… the challenge wasn’t whether to sell but where to allocate the six-figure sum to most benefit their short- and long-term goals. We wouldn’t have found a path forward if they didn’t share their concerns.
Begin with the end in mind.?It is common for professionals these days to give me some pushback when we discuss the word?retirement, saying things like ‘I don’t want to want to wait until my healthiest and most energetic years are behind me to live to the fullest. Which I fully agree with! We often incorporate charitable giving, education funding, and yes, vacation aka family time, into yearly spending goals. But I encourage you to broaden your thinking--?the end?applies to many things that belong to your family – from things like grandpa’s heirloom watch, the rental condo near the University, or the experiment ski cabin in Keystone. What, in your mind, constitutes the end from where you are right now?
Do not judge.?Listen with a discerning ear for the reasons, past fears, and sources of inspiration. In relationships, we have the benefit of varying perspectives from spouses, children, and parents. Some things could benefit from the third-party view of an advisor, but family discussions often do not happen without a prompting event. Planners refer to these as questions behind questions. Maybe your spouse is afraid of the market because a grandparent lost everything and doesn’t understand it… which can be managed over time with education and incremental steps. Or maybe your husband doesn’t want to proceed with Grad PLUS loans because of the short time between now and your retirement, therefore, limiting your lifestyle. If we listen closely, sometimes we can hear than just opposing views that can improve our life.
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If a negative circumstance arrives years down the road because an expressed concern was ignored, that spells more than just financial trouble. We encourage you to employ these three tactics when discussing your family finances from pet care to keeping your aging parents comfortable. Be honest. Begin with the end in mind. Do not judge. These are all essential to pursuing your financial freedom.
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