The money conversations you may have had with your children when they were growing up are certainly different once they become young adults. At some point the realities of your wealth become more tangible for them and it becomes crucial how you approach these discussions. This can affect your strategy for wealth management and how you might transfer that wealth to future generations.
One place to start is to ask yourself: Are your children financially responsible and trustworthy enough for you to share information about your own personal wealth? Or would you prefer to keep your own financial affairs separate and private? There is no one right answer for every situation, and often it’s a matter of degree rather than all or nothing.
Considerations for a Common Yet Complex Issue
While the decisions to involve your adult children in your money decisions can be complex, they are increasingly common, especially if you have successfully grown your wealth over the years. For example, according to a Pew Research 2015 study, about 61% of parents in the United States with adult children have financially helped their adult child over the preceding 12 months, and that percentage goes up to 73% for higher-income U.S. households.1
There are many opportunities to introduce financial discussions with family members. However, we will focus on five common areas and some possible ideas and considerations when it comes to money conversations with your adult children around them.
There is no one-size-fits-all strategy when it comes to money conversations with your adult children. There can be many variables that can come into play, including the number of children, their own special needs or medical conditions, or their overall ability and interest in discussing and managing money matters. At Modera Wealth Management LLC, we will work with you and your adult children to develop a customized strategy that makes the most sense for your individual situation.
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