Posted on February 18, 2016 by alyssacharles
Although some would beg to differ, the sometimes intimidating, often misunderstood “F” word – finance – isn’t a bad word. Talking about personal finances can be a touchy subject and if discussing it with your partner, parents or kids is something that you’re not quite sure how to approach, you may end up avoiding the conversation all together. Here are some tips to help you have those important conversations about personal finance with the most important people in your life.
Talking to your partner
You may be a spender while your partner is an avid saver. Being transparent with your partner about your spending and saving habits can be difficult to do and although your views about finances may differ, openly communicating about your short-term, long-term goals can help the both of you achieve financial success. Remember to:
- Talk about how you will manage your day-to-day expenses
- Set up regular money talks to discuss financial plans and decisions
- Set goals together – both long term and short term
- Learn each other’s financial personalities
- Work as a team and remember that your decisions affect the both of you.
Talking to your aging parents
It can be difficult to think of your parents facing the challenges of aging. Topics like chronic illness, disability and long term care may not be things you want to discuss with your parents, but there are advantages to addressing them sooner than later.
- Early discussions allow you and your parents to make decisions when logic isn’t clouded by emotion
- Early discussions allow more time to develop money saving and tax planning strategies
- Early discussions provide you and your parents more options when planning for their future
Talking to your kids
Teaching kids about money from a young age can help them to develop skills and confidence to make smart decisions about their finances when they’re older. Money management lessons for children revolve around five basic concepts.
- Receiving money from allowances and small jobs around the house or in the neighborhood.
- Spending. Learning the difference between needs and wants and understanding the relationship between price and quality.
- Starting the habit of setting aside some money each time they get it.
- Understanding how a loan and repayment with interest works.
- Giving back in the community and finding ways to share their time as well as their money.
Source: A., Charles “How to talk to your family about the “F” word: Finance”, February 18, 2016