Written by Anna Shea ChFC®, ADPA®, and Tyrel Lacey CFP®, ChFC®
Holiday Gatherings: Sparking Family Conversations on Financial Legacy
As we enter this season filled with tradition it’s amazing to see the many ways our clients choose to celebrate the holidays, whether it be with friends, family, or beyond. We believe this is the best time of year to start a discussion around family finances, particularly if leaving an inheritance is one of your goals.
Many of our clients have found it helpful to begin talking with their intended heirs early on. Statistics show that one in three Americans who inherit money will spend it within the first two years. By beginning the conversation early, it opens the dialogue and creates a great way to foster a deeper understanding of family values and empower them to make informed decisions while creating an enduring legacy.
These family meetings don’t have to be a formal, structured process but can be as simple as a question asked while washing up after dinner. The idea being spending quality time together and engaging in meaningful conversation about financial values. These values can include:
- Discipline – Are your children disciplined in their spending habits, or are they prone to impulse purchases? How is this factored into your estate plan?
- Responsibility – How are you and your family prepared for unexpected financial emergencies? Looking long-term, who in the family do you feel comfortable making significant financial decisions?
- Confidence – Have your children taken steps to plan their financial future? How are they building towards financial independence?
- Patience – Is there a family understanding of your approach to building sustainable savings and planning for the future? How do you remind yourself of the bigger picture when tempted to make emotionally driven financial decisions?
Your success has been a result of these values, and more, that you’ve put into action over the years. Having conversations in these areas can also be a value to your family and those who you want to support into the future. Your financial planning team is here to support you through these conversations and provide guidance as you are working to cultivate a legacy of financial understanding and accountability.
