Does Your Family Know the Plan?
When was the last time you sat down with your children and talked about your financial situation? Don’t worry; if you’re like most of us, it’s rare. It’s understandable since most of us were raised to think of money as a private thing that we should keep hush-hush. But why? Including your children in your financial planning isn’t just helpful; it prepares everyone in the event of an emergency. We all know life throws unexpected curveballs, and when it does, having your family on the same page means less panic and more confidence moving forward…together. Because in a time of need, we need to focus on the things that matter most- being present with our loved ones!
As we age, it becomes hard to imagine a day when we might not be able to manage our finances or explain where everything is, but that day will come. Your family doesn’t need to know every in-and-out detail about your finances but knowing the basics can help equip them when you might need them most. Since I’ve been a part of KWB Wealth, there’s been an ongoing focus on creating a roadmap that loved ones can follow should the time present itself. Your roadmap could be as simple as a one-page cheat sheet covering the basics: where you bank, who handles your investments, and where one can access your trust documents. I read a good analogy recently, “It’s like teaching your kids how to change a tire — you hope they'll never need these skills, but you’ll be so grateful they have them when the moment comes.” That is so true; there is no harm in being overprepared.
At KWB, we are also big advocates for inviting your children into a meeting with your financial advisor. It doesn’t mean giving up privacy, but it does create familiarity and builds a relationship. We want your family to be able to put a face to the name of experts you trust and feel completely comfortable knowing who to call if something happens. One couple I know had their two adult sons attend a financial review at least every couple of years. The sons didn’t make decisions but knew where their parents stood, their long-term plan, and who to call if an emergency arose. Years later, after their dad passed, the family was so grateful they'd taken those early steps. They'd grown close to their advisor over time, and since everyone was already aligned on the plan, it took a lot of stress out of a difficult time.
Involving your children in money conversations can also be seen as giving them something that money can’t buy, real-life skills. Regardless of what phase your child is in, seeing how you think through your financial decisions gives them a starting point for their own journey. Consider sharing an overview of your estate plans, showing them where and how you organize important documents, and offering reasoning behind your approach to financial planning. These skills aren’t taught in school, which makes sharing the wisdom you learned from years of experience critically important.
Inviting your family into your financial world doesn’t need to be complex; a simple conversation goes a long way. Share a few of your important documents and allow them to ask questions. Invite them to one of your upcoming financial meetings and introduce them to your advisor. These small steps help bridge the gap between your plans and your loved ones’ knowledge and gives all of you peace of mind should the unexpected arise.
Navigate your financial plans with your loved ones now, so they won’t have to navigate them alone in the future. They’ll be grateful knowing how to fulfill your wishes — and you’ll be grateful knowing you made it easier for them to do so.~ Katie Reynosa