The family is a school of duty based on love, wrote Felix Adler. However, money is something that parents and I find extremely difficult to talk about. Despite the fact that it is extremely necessary.
Research GoBankingRates found that 73 percent of adults have never had an in-depth conversation about money with their parents.
Forget politics or sex – money can be one of the most taboo topics in families, even in the most loving and understanding ones.
Although it is talking about money can be uncomfortable, is also important. Talking about money can make things easier in the long run. Finding out financial situation with aging parents can ease the relationship and make it easier to care for them. It can also bring much needed clarity about their expectations and help everyone plan for the future and avoid misunderstandings and unnecessary stress.
The first step is finding the right time to start talking about money. Organize a family meeting or invite a trusted – but neutral – third party to help guide the conversation. This will take some of the pressure off both you and your parents.
The key to having conversations about money is to come from a place of love and concern—not guilt or self-interest.
1. Create a financial plan with an advisor
“I'm working with a financial advisor to help me make sure I can reach my financial goals, support my kids, retire on time…”
If you are expected to inherit any amount of money, an advisor can help you determine a financial plan. If you have children for whom you are saving, it is useful to know if you can expect in the future, perhaps financial help from your parents or later from an inheritance.
2. Make sure you have all the necessary documents
"My partner and I have saved all the documents about our assets in case something happens to us."
Even if your parents don't want to share the actual amount or status of their assets, it will save a lot of hassle, stress and worry if you understand where the assets exist and who you need to contact about it. There are key pieces of information that you should definitely have , or it is appropriate for parents to share them with you.
3. Discuss their preferences
"I want to talk so your wishes will be granted and your legacy will live on if anything happens to you."
Approach the conversation in the most positive way possible. Your parents' finances greatly determine what their end-of-life experiences will be like. They may be dependent on you, and you need a plan as soon as possible to take care of them both financially and physically.
Don't let miscommunication damage your family relationships or finances.
After studies nearly 70 percent of parents over 55 expect their children to help manage their money in retirement. However, 36 percent of adult children do not even know that they have been entrusted with this task.
You talk to your elderly parents about finances, even though it may seem uncomfortable at first.
