Money and finances are taboo topics in most families. Even parents, spouses, children, and siblings do not discuss openly the subject of finances with the other members of the family. Isn’t it natural to discuss something so important with the people you love? It is possible that insecurity, guilt, or a fear of the unknown prevent you from discussing this important element of your life. This is especially true since these conversations are essential to your life, which will help avoid disputes in the future. A meaningful discussion about wealth management with your family and overcoming any hesitation is critical to ensuring your financial success.

Benefits of having meaningful conversations

• Will help build trust with your spouse
• Will empower your children to form a healthy relationship with financial matters
• Will help to align with your parent’s decisions regarding their finances
• Will help avoid surprises later in life as everyone is aware of the financial structure

How to prepare for meaningful conversations

Here are a few questions you can ask yourself that can help you shape these conversations with your family –

• What are your thoughts and feelings about money?
• How important is money to you?
• Are you and your spouse on the same page regarding money matters?
• Is it important to talk to your children about money?
• How aware are you of your parent’s finances?

Conversation with your spouse

Your spouse should always be involved in any financial decision you make. A smooth life depends on aligning and synchronizing both wheels. Talk to your partner about these issues to maximize the conversation.

• How can money help us achieve our life goals?
• Who is affected by the financial decisions that you both will make?
• How do you view money and what is the most important benefit that money offers to us today?
• What has influenced your financial attitude?
• How to deal with money matters when it comes to children?

Your family will have a stronger financial security system in place if you can both agree on your philosophies and build new ones.

Conversation with your children

Before discussing money with your children, you should talk to your spouse about your values regarding money and harmonise your values. When both of you are on the same page and maintain consistency, the message will be stronger.

• Discuss and help them understand the difference between needs and wants.
• Discuss with your children rather than talking or lecturing to them about money matters. This will make the conversation interesting and they will feel like they are a part of the discussion.
• Focus on what money means to you and your family and what as a family you hope to realize with it.
• Teach them different means of handling money – cash, debit cards, credit cards, demand draft, etc. Different concepts in finance like income, expenses, budgeting, savings, investments, donation, insurance, internet banking, identity protection on the internet, etc.
• Provide them practical exposure by giving them an allowance and asking them to manage it for a certain period of time, this will give them the experience of taking decisions and the consequences of those decisions and living with it.

Conversations with your Parents

Having this conversation with your parents needs to be done with great care so as not to offend them. As opposed to advising them, you will need to take a knowledge-gaining approach to the topic.

• Their earlier experience with money and the challenges that they faced.
• How did they deal with those challenges?
• What are their best decisions regarding money matters?
• How did they go about making their retirement plans?
• What investments or savings are helping them?
• Ask them to share their mistakes with you.
• Do they need any help with their health care?

Talk regularly with your family about money, just as you do about everything else. If anything new happens, share it with everyone. The management of wealth within a family should be transparent and healthy to avoid unnecessary stress and conflict.