4 Reasons to Involve Your Family in Financial Decisions
It’s ‘Talk Money Week’ in the UK. From 7th-11th November banks and financial organisations are being encouraged to open up new ways for people to have conversations about money. There’s lots of info about activities going on across the UK, on the ‘Talk Money Week’ website.
As a contribution to ‘Talk Money Week’, this month’s article from the Harpur Wealth Management team focuses on the importance of involving your family in financial decision making.
Finance and Families
Lots of families consider conversations about finance to be taboo. There are fears that talking about money will cause arguments, prove embarrassing, or turn a happy occasion into one that’s fraught with tension. At Harpur Wealth Management, we see something quite different. Clients who decide to have honest and open conversations with their families about financial decision find that it’s a positive experience for everyone involved.
Here a 4 reasons why we recommend including finances in family conversations:
1. Avoid a Contested Will
Writing a will is a way to determine what is going to happen to your assets after your death. It helps you to ensure that your family are provided for and allows you to clearly communicate your final wishes.
No matter how clear your rationale when writing your will may be, though, it may be misinterpreted by your family in the stress and emotion of grieving. 3 in 4 people are involved in inheritance disputes at some point in their lives, and disputes amongst siblings are the most common form of this.
An honest and open discussion about the contents of your will, and the decision-making process behind them, means that your family is prepared in advance. Any issues can, therefore, be discussed directly with you, and the family is saved the stress – and expense – of contesting a will.
2. Strengthen Your Relationship
If you’re on the brink of committing to a relationship, an evening discussing finances may not sound like a romantic option. Evidence shows, though, that couples who make time to talk finances early on in their relationship feel that the bond between them is stronger as a result.
Why talk about finances? It may be the case that one person has more savings, or higher debts than the other. You may have very different attitudes towards money, and wildly varying financial goals. Spending time together understanding how you think about and manage money could make a very real difference to the long-term goals that will define your relationship.
3. Make Talking Money a Habit
A ‘Talk Money Week’ comes around once a year; a family conversation about money every few months is a useful habit to instil. If money is something you talk about openly and honestly, it no longer has the power to set off an adrenalin rush every time it’s mentioned. And conversations about finance don’t always have to be about a lack of money – there will be lots of positive moments, too.
If you’re planning for retirement, it’s worth while checking in regularly on your plans. Getting a financial advisor on board can be helpful with this. They’ll talk about the kind of retirement you want and help you to create a financial plan that will help you to achieve it. Regular review meetings mean that, should circumstances change, there are opportunities to adjust the plan in order to keep it aligned with your goals.
4. Create Good Financial Habits for Your Children
Children who grow up in families that never talk about money, will continue the silence as they grow up and have children of their own. As a result, they may miss out on opportunities to understand how to manage their money effectively as adults. Involving your kids in easy-to-understand activities that allow them to learn about money, builds confidence, knowledge and skills which will serve them throughout their lives.
Harpur Wealth Management
At Harpur Wealth Management we think it’s important to work closely with clients and their families. It’s part of getting to know the people we work with. We are always happy to talk to young adults about the financial services we provide, and the way investment can help to grow their savings. It’s never too early to start planning for big financial goals, like buying a property, or finding a pension that will finance your retirement.
Why not book a free consultation today with a Harpur Wealth Advisor? Call us on 01234 924620 or use our online form.
This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions.
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