Talking money or finance with family can be difficult… truth be told, for some individuals, the subject of money can be an overwhelming one to approach.
Regardless of whether it’s your parents, siblings, kids or your partner, conversations around money can be really testing if there are undisclosed issues that aren’t brought to light and settled.
In any case, communication is key in ensuring everyone involved has a clear understanding of current situations and understand what financial goals are set to be achieved individually or together. Creating a positive process in financial planning will ensure a better financial wellbeing for yourself and the rest of your family.
The following tips are a great starting point for positive talks around money, but a great tool that has already helped families manage their cash flow and wealth position easily is the moneylab Wealth Management App. By automatically tracking expenses and wealth position, it offers detailed reporting and tracking of your ongoing position versus your goals, as well as insights from our team.
Set aside time to have constructive conversations
Money matters can be fuelled by emotion. Spur of the moment arguments about money can snowball and spark the breakdown of a relationship. When you do sit down to discuss your finances with your family, make sure it’s in a comfortable environment, and be prepared – have your laptop or a notebook with you so that you can look at all issues, including budgeting and spending, savings and investments – both short and long term, as well as retirement plans if relevant.
Don’t keep secrets
It’s important that both you and your partner are completely honest about how you handle family finances. You don’t want to keep spending habits secret… if you are prone to the occasional splurge or you have a separate bank account where you are saving for your dream car, now is the time to talk about it.
Set realistic goals
Kicking old habits can be hard. Asking a partner or family member to completely cut out an important aspect of their life such as daily coffees might be hard for them to handle initially. Taking steps to slowly reduce or change a habit might be a better approach as opposed to going cold turkey resulting in a revert back to old patterns.
Support each other throughout the process
Encouraging one another through the honest conversations you have about money can help create learning opportunities, foster openness and develop healthy habits that will last for years to come. By bringing a positive light to the matter and normalising ‘money talk’ you can help form good habits for yourself and your family members that support a stress-free pathway to wealth.
Take advantage of professional help
There’s always help around when needed. If you find yourself stuck in a financial conundrum between family members or your partner, the team here at moneylab is well versed and trained in fostering positive relationships around money. Contact us today with any questions, we’d be happy to help guide you.