Ever asked yourself how you could offer guidance to your adult grandchildren when it comes to their future financial success? After all, you’ve got a lot of lifetime experience – making budgets, holding down jobs, planning for your own future wellbeing, putting some savings aside – basically you’ve got lots of valuable information and tips to share. And who better to help while they’re young and just starting out than members of their own family?
Have an Open Dialogue
One of the best ways you can help pave the way for long-term financial security is to have an open conversation – without being overbearing – with your children’s children. They often look up to their grandparents and may be more willing to listen to them (you) than to their own parents. This is a unique opportunity to give advice and direction based on your experiences.
Most parents want to raise their children to be independent: not only socially, but financially. But often, any advice concerning money is ill-received by the “know it all” 20-something year old.
This is where you come in. Grandchildren seem more willing to listen to grandparents because grandparents are often seen as “stress buffers”, “family watchdogs”, “roots”, “arbitrators” and “supporters.”
Often, by the time your grandchildren are in their 20s, they are holding down a job, earning an income and making their own financial decisions. However, they can benefit from some gentle guidance about budgeting, saving and debt. This is a time when they experience a lot of firsts: first full-time job, first car, first apartment or even first mortgage. In other words, they may be experiencing debt for the first time in their lives!
They could be balancing all these things along with trying to repay school loans and maybe even have plans to wed and have children themselves. Some helpful, non-judgmental financial advice would probably be very welcome. And that’s where you come in.
Been There, Done That
As people who’ve “been there” and “done that”, we are only too well aware that there are regular expenses to pay – from groceries to utilities to insurance and unexpected bills that come out of the blue. It’s easy to get caught up in debt if there isn’t a concrete plan or budget in place, especially if you’re a young adult and just starting out. Debt can quickly escalate and become overwhelming.
The sooner young adults start balancing incomes and expenses, while keeping debts to a minimum, the better positioned they will be for future financial success.
Here are a few tips on how to have a productive “financials” conversation with your grandchildren:
1. Start the Conversation
Some young adults are reluctant to bring up the subject of finances with their parents, but grateful when given an opportunity to discuss their concerns with someone else. That someone else could be you – a trusted and experienced confidant.
2. Listen Carefully
Your grandchild may give you clues that finances are becoming a struggle without coming right out and saying it. Listen and watch out for verbal cues and hints; such as them expressing anxiety about whether or not they’ll get a raise or a bonus at work.
3. Share Your Experiences
Describe to your grandchildren some of your own current money challenges now that you’re out of the workforce/retired. Let them know that just because you’re a retiree, you too haven’t got to still be concerned about money and your own financial wellbeing.
4. Be Objective
Acknowledge that you do not have all the answers and, if appropriate, recommend that they make an appointment to speak with either your own personal financial advisor or to make an appointment with one of their own choosing.
Breaking the Ice
A good way to broach the subject of their financials is to say something along the lines of “I sense you’re struggling or you’re worried and need some help concerning your financial situation. I want you to know that you can come to me for advice whenever you need it.”
Be empathetic. Explain what your money worries were when you were their age and how you dealt with them – the mistakes you made, the solutions your came up with. They’ll respect the fact that you too were once worried and unschooled in the ways of the financial world. This opens the door to you being able to share some of your money management tips without sounding ‘holier than thou’ or judgmental.
As we all know, an advisor can provide expert advice – and a young adult may be more comfortable talking about their financial situation with a professional. The sooner they get their financial life under control, the sooner they will be on the road to a successful, less stressful future.
Sharing is Caring
By raising the topic of money and sharing your personal insights as regards the trials and tribulations associated with it, you can help your grandchildren address small challenges before they become large – or worse – insurmountable.
It’s just one more way that you can help set them up for long-term financial success.