In one of Good Finance’s latest articles, he talked about the importance of educating children in personal finances.
Teach them how money works, the importance of saving, the basics of controlling expenses, etc.
However, on many occasions it is the child who has a stable financial situation and the parents who need help.
Educating parents is often something quite uncomfortable since they see it as something strange, in the natural relationship between parents and children.
How can you solve this problem?
Here are tips for anyone who has achieved financial stability. That you are making good and healthy decisions about your money and that you want to offer help to your parents to make sure they are heading for a safe, secure and happy retirement.
Fulfilling all the dreams they have had during their life.
Clearly defines what you want to achieve. You have to be clear about the purpose for which you are going to teach them how to manage their money. If it is out of curiosity, to see the money they have, then they don’t bother. Do you want to detail your assets to help them correctly define a will? Do you want to make sure they are doing everything necessary to have a good retirement? Are you worried about the money management they make every day? Be clear about what you want to talk about before you start.
Let your parents know you want to talk to them. Call them and meet them to talk about it on a specific day. Make it clear what you want to talk to them about. Be direct and clear, because you may be getting into a difficult area where your relationship with your parents may suffer.
Schedule a large block of time for the talk
Pretty much what you think at first. If you think you can have a conversation about your parents’ finances with them in an hour and then go have some friends with your friends, you’re very wrong. You are dealing with people who have a more complex financial situation than yours. Let the conversation flow, evolve and grow.
Schedule the talk in the place where they would have easier access to their financial documents. Very often, that place is your home. So if you live far away you may want to schedule the talk for a few hours in the middle of a longer visit. When questions become complicated, and this will happen sooner or later, it is best to be close to the location of your financial documents.
Plan non-financial activities before and after the conversation. With this, you are transitioning to a difficult topic in a much simpler way. A good meal before the talk and a great dinner afterwards, is a great way to do it.
Do not forget the fundamental tools
Calculator, paper and pencil (or pen). This way you can take notes, create schemes, make lists, etc. And facilitating the calculations to be performed. Have everything ready before you start so that once you start talking to your parents, the conversation is not interrupted.
Make it clear to your parents, that you do it to help them. Your parents will usually be quite apprehensive about these types of conversations. This problem can be broken by making it clear that you want to talk to them about it for them, to help them for what they have done for you.
Make them very clear about the purpose of the talk. So your parents know why you are asking questions about their finances.
Ask all the questions you need and listen carefully to the answers. Get as many details as you need. In this way the conclusions will be more accurate. Take notes if necessary. And if your parents ask you questions, be completely open and sincere because they are trying to do the same to you.