The Money Talk: Being open and honest key to building a successful financial future
When it comes to talking about money, many couples often avoid discussing it with each other until the last minute, such as before marriage or moving in together. Parents on the other hand, commonly find it a complicated topic to discuss with their children. However, when it comes to building a family’s financial future together, it’s important to have the money talk early on.
Couples and families should talk openly and honestly about money so that everyone is on the same financial page. From dividing who manages the household finances to sharing each person’s spending style and savings habits, these conversations can have a positive impact on everyone and help set the stage for financial success.
If you’re looking to have the money talk with a loved one but aren’t sure how to begin, here are three ways to help you get the conversation started. Start with talking to your significant other. Whether you’re a spender or a saver, communicate how you approach money early in your relationship to ensure there are no surprises later on. Be open to sharing things with your partner on a regular basis, such as your monthly cash flow, savings goals and risk tolerance. Talk about how much money you will need in the future, collectively, to retire comfortably or put kids through college, and what your approach will be when it comes to growing and spending your wealth.
Next, speak with your child. From starting a piggy bank to saving for a new bike, teach your child about planning, budgeting and saving. Start the conversation early and continue to make money lessons relevant to your child’s age so they can understand where their money is going. Tell your child about your own money decisions to encourage good savings habits and answer any questions to keep them engaged.
Finally, talk to a certified financial planner. As your financial circumstances and responsibilities are likely to change over the years, talking to a financial planner can help clarify what you want for your future and how to make it happen by helping you create a personalized plan. A financial plan provides you with confidence and peace of mind that all of your financial resources are working together toward your long-term financial goals.
It’s never too early to begin the money talk. Be open and honest upfront and continue having regular financial conversations to help benefit the entire family in the long run.
For a further discussion around your investment and estate planning issues, contact Neil Mardian, M.Sc. (Mgmt) CFP at 403-504-3026 or neil.mardian@td.com