Historically, intergenerational discussions about finances have too often been viewed as a no-go area, but research suggests families are beginning to open up, with young adults significantly more likely to have talked to their parents about their finances than previous generations. In total, three out of four 18 to 24-year-olds said they spoke with their parents about money matters when they were growing up; this compares to just four in ten over-65s and half of 55 to 64-year-olds.
Experts have long advocated the benefits of families talking openly about financial affairs. Parents who do so are more likely to ensure their children are better prepared to deal with money matters when they reach adulthood, whether in relation to day-to-day spending issues or the need to develop longer-term savings habits.
The need for young adults to be financially savvy has perhaps never been greater, with a growing proportion of this generation now owning a considerable amount of wealth. Indeed, estimates suggest the number of Millennial and Generation Z millionaires has doubled over the past year and now stands at a record high.
An increasing desire for families to discuss financial affairs is certainly a positive trend which should help the next generation realise the value of money and establish good financial habits at a young age.
So, we encourage you to keep the conversations going to help secure your children’s financial futures.
Source:
Royal London
Bowmore
Please note that all content within this article has been prepared for information purposes only. This article does not constitute financial, legal or tax advice.