In this era where smartphones give kids nearly boundless access to the internet, and where it’s almost TOO easy to buy something with the click of a button, it is more important than ever to teach your kids about how to be smart with money. And the first step — communication — is often the most difficult.
The good news is that Millennials, many of whom are becoming parents already, seem to be starting a new trend of openness about money. A groundbreaking study conducted by Principal and The Center for Generational Kinetics found that Millennials are already having more discussions about money with their families and other generations. In fact, they are twice as likely as Boomers or Gen Z to have discussed finances with a family member in the past week!
But talking about money can become very emotional and fraught with anxiety if you don’t come at it in a place of understanding and education. It might be easier for some to discuss topics like savings, retirement planning, and large purchases, but the study found that Millennials and Gen X are much more likely to avoid talking about topics like inheritance and long-term healthcare.
“Understanding financial hot buttons within your family can help lead to more productive conversations,” said Tim Hill, executive director of Principal. “We often avoid the stuff we feel unprepared for, so consider seeking help from an experienced professional to guide your family in these discussions.”