One of the most common life events that spark interest in working with a financial advisor is starting a family. When starting a family, there are a number of factors to consider, including purchasing an adequately sized home, college tuition and board, saving for weddings, etc. While many parents view the financial responsibility of their children, and to an extent their parents, as solely their responsibility, it is important to note that economic interests often overlap within a family. Grandparents are often interested in their grandchildren’s college plans, and grandchildren will likely someday be involved in the care of their parents. For this reason, it’s necessary to incorporate and inform all family members when discussing financial plans, not solely the parents. However, discussing financial matters is often seen as taboo in American society. Arizona financial advisor Kevin Canterbury recognizes that generation family planning may be uncomfortable but assures readers that is essential in the stability of a family’s financial future.
Generational Financial Planning: Conversation
Before delving into the complexities of planning for the multiple generations in your family, it is always best to have a general conversation about your family and the major variables that may affect your ability to provide in the future. Ask yourself questions pertaining to your relationship’s status, such as marriage, cohabitation, or potential divorce. Do you plan on expanding your family with birth or adoptions? Is an adult child likely to move back home in the future? Are your parents in good health, and what do their finances look like? Discussing future family events may help uncover different financial needs you had not considered and lead to a more comprehensive generational financial plan.
Generational Financial Planning: Your goals
Once you have considered the future life events that may impact your family’s finances, you should begin to list the goals you hope your family can achieve and their potential costs. Goals such as:
– A child attending college and/or graduate school
– Remodeling the family home or completing overdue repairs
– Starting a family business in the near future
Kevin Canterbury of Arizona understands that most families will make a point to keep money separate. However, it is still a good idea to talk about your personal goals with your family members. A financial advisor may be able to help family members work on their goals as well.