3 Money Talks To Have With These Different People in Your Life

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Money problems rarely appear out of nowhere. Often, they stem from important conversations that don’t take place.

When these conversations are skipped, money stress can build. A small misunderstanding can quickly turn into a big problem. Fortunately, having honest, important conversations can prevent a lot of frustration. Here are three conversations worth having with the people in your life.

Budgeting and Goals With Your Spouse or Partner

While you’d like to think you’re on the same page financially with your partner, that’s not always the case. Even if both of you are working and earning income, you might have different spending habits and priorities. 

Meet monthly with your partner to discuss your spending priorities. Are there any special events that will cause you to eat out more often? Are there birthdays that will increase your spending on gifts? Do you need to sign your kids up for an extracurricular activity? Small things can quickly throw off your monthly budget if you aren’t on the same page.

It’s also important to regularly discuss your short-term and long-term goals. Are you planning a family vacation? Do you want to complete a home improvement project? Do you need to pay off debt? Whatever you discuss, make sure it’s clear that it’s a shared plan to help you both achieve your goals. 

Long-Term Care and Estate Planning With Your Parents

Many adult children avoid having an important conversation with their parents. They don’t know what their parents want as they get older. At a certain point in their lives, they may need long-term care, whether at home or in a facility. Without this conversation, decisions can feel rushed, and the outcome can be more expensive.

While it might not be a fun conversation, it’s crucial to talk to your parents as they get older. Find out if they have long-term care insurance. Learn how medical expenses will be handled if they’re needed. Ask them where they keep important documents, such as wills and trusts. Be in the know about who has power of attorney or the ability to make medical decisions. These conversations should focus on planning so that, if decisions need to be made, they can be made without extra stress. 

Teaching Kids the Basics of Money Early

Money habits are often formed early. Kids who understand money will feel more comfortable and confident as they get older and need to make their own financial decisions.

Just keep in mind that it’s never too early to start having money conversations with your kids. Simple things like where money comes from and how it’s earned can be extremely beneficial. Or talk to them about saving for something special instead of spending. As they get older, you can start discussing basic concepts like budgeting without using complex terms. 

As you begin these important conversations, keep things simple and consistent. Remember, this is a conversation, not a lecture. The more engaged they are, the more likely they are to understand what you’re saying. 

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