At 3Rivers, we talk with people about money matters every day. It’s our job and it’s who we are at our core. But we also realize there are many people who aren’t as comfortable talking about money matters. Even when it’s with their own family. In fact, there are many times when it is easier to talk about the topic with complete strangers than it is with close family members.

Did you know that a mere one-third of Baby Boomers had fully informed their kids about their financial situation? This is according to the findings of a recent survey cited in the article.

A recent article on CNN Money suggests that our lack of communication with our adult children could be emotionally and financially draining:

Your adult children could be worrying about you unnecessarily, or they may be unprepared to help with your affairs if the need suddenly arises. And they may have unrealistic expectations about how much (or little) you’re willing and able to help them with their finances.

While they don’t need to know every itty-bitty detail, there are a few basics the article’s author believes should be considered your basic starting points:

• Your plans. Let your kids know about any wills, health directives, and funeral arrangements, as well as where to find vital documents. They also need the contact info for your attorney, financial planner, broker, and accountant.
• Your child’s role. In naming your executor or giving someone power of attorney, it’s best to ask your top candidate and assure that he or she is willing.
• Your assets. Make a list of your banking and investment accounts, real estate holdings, and insurance policies. If you’re uncomfortable giving this info to your children, store it with your financial adviser or attorney and let them know the list is there.

So where to from here? Start with an honest assessment. Then, think about implementing one or more of the following action steps:

Action 1: Know where you stand financially.
If you don’t, develop a simple balance sheet.  Track spending and compare it to your income.

Action 2: Ask, “Are my kids ready for a conversation like this?”
Age has little, if anything, to do with the answer.  Family dynamics, financial situations, employment status etc. have much more impact on the “readiness” factor.

Action 3:  Have honest conversations with your children.
As the article states: “You don’t need to tell your children your 401(k) balance, the size of your pension, or the value of your other assets. You do, however, want to offer some evidence beyond a vague “don’t worry about us.”

For some personal and professional guidance, consider meeting with one of the CFS* Representatives at 3Rivers. We can help.

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union members. ClearFuture Financial is a trade name for the investment & insurance products available at 3Rivers Federal Credit Union.