MONEY TALKS

Money Talks, Wealth Grows…Family edition.

Page One: Important money talks as individuals and as a couple

Talking to family about money isn’t always easy. But open conversations can help keep families’ finances on track. Families that do talk about money often find themselves better set up to meet their basic needs. They are also often more prepared for unexpected life events.

You’ve prepared the money for the family, but have you prepared your family for the money?

Asking the right question, having open conversations, and having the right approach can help build your family’s legacy.  Isn’t the worth the conversation?

Page Two: Starting the conversation.

Dialogue #1: Discuss your values around finances your Money EQ (Emotional Quotient).

Where have you been, where are you now, and where do you want to be? Talk about how many influence your childhood. What values did you each grow up with? How did these values shape your thoughts on money now?

Dialogue #2: Determine where each stand financially.

Talk openly about credit scores, earnings, expenses, savings, and debts. Don’t forget about dreams and goals.  They key here is to remember to avoid judgement and they way to do this is to go back to dialogue # 1.  There are always reasons why money decisions are made the way they are. 

Dialogue #3: Determine where each stand with Money IQ (Intelligence Quotient).

Again, with out judgement figure out where the gap is and where each one can learn a little bit more about investments, financial protection, or additional health care.  It’s about knowing you have options and having a knowledgeable financial advisors can help guide.

Dialogue #4: Determine important decisions and the timeline.

Prioritizing the important decisions helps clear the path and unnecessary arguments.  The crucial part of this process is to figure the timeline.  When will this happen, how quickly can it happen and what are the challenges.

The Conversation: Determine what behaviours need to change to reach your wealth.

This conversation will determine if you have the tenacity and the urgency to change certain habits that will lead to better money decisions.  Coming together and recognizing your blind spots and having a plan of action better the chances of reaching your financial goals. Remember planning with purpose redefines your wealth. 

These dialogues build a foundation that will lead into meaning conversations that construct the framework to wealth intelligence where growth and prosperity is always in check. 

I personally run my family like a corporation, we have annually meetings on budget, goals, aspirations, and a plan to make it happen.  Involving your children at the right age with appropriate discussions will enhance trust, teach them the value of money and legacy, enhance their own lives, and respect and understand your wishes.  

Page Three: Conversations with your children

Dialogue #1: Right time to start the conversation.

You will know when it’s right to introduce money to your children.  For me it was when my six-year-old told me to take that “plastic” thing to pay for the toy she wanted that I said no to.  This is my oldest; she is very good at putting two and two together.  My younger daughter the conversation came a few years later.  For general purposes, I think age 7 is a good place to start the introduction, but this is a personal choice.

Dialogue #2: Take them to the bank.

The bank is good place to start to understand concepts of accounts, loans, line of credit, credit card and why banks exist. And open savings, checking and mad money bank account!

Dialogue #3: Setting up a budget.

Start by giving them an allowance and dividing this into different categories, this will start creating the right habits and behaviours.

Dialogue #4: When to bring them into the family annual meetings?

Again, this is a personal choice; however, the longer you wait the harder it will be changing any unwanted habits.  The best time to start is grade 7 or when they get their first real job whichever comes first. 

The Conversation: Discuss your family’s manifesto and the importance.

This is the most important conversation you will have with your kids as adults.  Life starts to get complicated with your children’s aspirations, future spouses, and with your future health needs, and final wishes.  The importance of this conversation is that this embeds legacy for you, for your children and teaches them to create a legacy for their own family.