Financial literacy is something that the entire family can benefit from. While talking about money can be uncomfortable for some, ignoring the family’s financial issues will not make them go away. The more you normalize financial conversations, the easier it is for you to talk about problems if they arise or eventual estate strategy discussions as you get older.
Partners Need to Communicate
Tension can build when partners do not manage finances well, struggle to talk about money, or aren’t honest about spending. In some cases, ongoing tension leads to separation or divorce. A 2024 Fidelity Couples and Money Survey found that 45% of partners said they argue about money sometimes, and one in four couples say money is their top relationship challenge.1
Spring can be a good time for couples to discuss finances. When you discuss money more consistently, your conversations will get easier and feel more normal. Couples may also want to meet with an objective third-party financial professional who can facilitate the conversation and help develop a comprehensive financial strategy.
Children of All Ages Need Exposure to Financial Literacy Concepts
If you have children, you might want to get them involved in age-appropriate family discussions about financial literacy and money matters.
Younger children can be introduced to financial concepts like earning an allowance through chores, saving money to pay for things they want, and learning that money has value. Teenagers can be taught the importance of working a part-time job to earn money while learning about budgeting, credit basics, and the deferred gratification of saving for larger goals.
It might be appropriate to include adult children in estate strategy discussions and know where your important documents and your healthcare directives are kept.
Children learn by example, so if you demonstrate good money behaviors like saving, budgeting, and investing, you can start the process of creating a strong financial foundation for your children. You can also create teaching moments by involving children in shopping decisions or charitable donations. These real-life scenarios can go a long way toward explaining financial concepts.
Sources:
1. Yahoo Finance, May 26, 2024 https://finance.yahoo.com/news/7-money-issues-lead-divorce-150003476.html?guccounter=1&guce_referrer=aHR0c HM6Ly93d3cuYmluZy5jb20v&guce_referrer_sig=AQAAAD-gSiSE0XJ4TWsBMPswXbQ5dvIqZd65QlTQ7IXt-m1XzrWMsaa_1 MJICs9I8f3JbANzT4n7V2tWEAP1dx0qWGul0i5wMwqthwwMKxqL0N6wGUqqXW4I_mvPqqTUNIbzHK15PB-7gsKpc3nXnYuSeR _Jup4_lqpxahaoyv7L-nWM
