Talk With Your Family About Finances
This article was originally published in the January 2017 issue of Hark!
Much of what you learn about life begins with what you learn at home, and finances are no different. Yet, many families find it difficult to discuss money, according to a recent National Endowment for Financial Education survey.
It’s time you have that talk. The United States ranked 14th globally for financial literacy in a 2015 survey by Standard & Poor’s, behind Canada, the United Kingdom and Germany, among others. Parents have the most influence on their kids’ money skills, habits and attitudes. Early financial education could mean the difference between a child who saves and spends responsibly and an irresponsible spendthrift who needs help with finances later in life.
Young children learn by example, so you should strive to improve your own financial knowledge and decision-making. Consider discussing your current financial situation and your short- and long-term goals with EY Financial Planning Services by calling 1-800-360-2539 to get your finances on track.
For older children, consider sharing information about your family’s financial position and including them in your estate planning process. It’s very important that you tell a trusted person (e.g., your spouse, child, attorney or executor) where important records can be found in case you are unable to communicate your wishes—such as a copy of your will; an inventory of assets, accounts and insurance policies; and contact information for financial firms with which you conduct business. Read “Communicating Your Last Wishes” in the January 2015 issue of Hark! for more information.
Having open financial discussions could help your family learn from your success—and your challenges! So make the time for your family to share your wealth of knowledge.