Why You Should Talk to Your Kids About Money | Estate Planning TV 011

There are people who are afraid to talk to their kids about their money and their assets. It may be because they’re afraid because they’re afraid of where they are at or where they are going or they are afraid that their kids will take advantage of them. Traditionally in the United States, talking about money is something that you keep private.

There are a few reasons why talking to your kids about money is important. The first reason is simply education. Schools don’t teach us about money, there’s one real place where we can learn what money can do and it’s with our parents. Have your kids present with you when you’re talking to your attorney or financial adviser, when you’re investing, and talking about money in general. You’ll be able to break the cycle or chain of that lack of conversation when it comes to money. There are many children who come in on a probate or after their parents have passed away and they do a bunch of stupid stuff with money. Part of that is that they haven’t been prepared to handle money in the future.

The second reason why it is important is it provides a way to give context why you’re doing what you’re doing: why you’re saving and why you’re doing estate planning. The reason why you’re doing everything is going to be the most important ways to get y9our kids to do what you want.

Third reason is experience. Tell your kids how you messed up and where you went wrong. Tell them how it is important to you to prepare for retirement and get long term insurance because of the experience that you have with your own grandparents or with your own parents as they get older. Tell them how that affected you from a monetary, emotional and psychological stand point. All these things are opportunities to teach and to provide context and to help your kids avoid problems and mistakes that you’ve made. Your kids will appreciate you talking to them about money and future generations will too.

Christopher Small is the owner of CMS Law Firm LLC a Bellevue estate planning law firm. Click here for a free strategy session.