4 tips to make financial discussions easier during the holidays
Holiday gatherings with family: They can bring a sense of togetherness and joy — but they can also be stressful. Why?
You may decide that, with everyone together for the holidays, it’s a good time to share your thoughts on your wealth, estate and legacy. But these types of topics can become awkward, especially if you have never had such conversations in the past.
This doesn’t mean you shouldn’t share topics that are vital to your financial life. Being open is key to preparing for the future. Communication can help address concerns about establishing financial security across generations.
But there are ways to approach these topics over the holidays that make sense for everyone. Here are four topics you may want to discuss, with some tips for how to achieve the best outcome.
1. Your values
| What to share | What to avoid |
|---|---|
| Talk about the key values in your own life that drive your personal and financial decisions. These could include prioritizing education or charitable giving and building a business or leaving a legacy. Be sure to ask your family members about their values and what drives their decisions. | Sensitive topics may trigger discomfort among your family members. |
2. Your estate
| What to share | What to postpone |
|---|---|
| Share your estate decisions depending on your comfort level. Perhaps explain the documents you have in place and the roles and responsibilities you’d like family members to take on within your estate plan. It can also be helpful to introduce members of your financial team (including your financial advisor, tax professional and attorney) so your family knows how to contact them if necessary. | During your initial discussion, it may be better to avoid sharing financial specifics such as account balances, net worth, asset distribution and other inheritance details. However, your discussion during the holidays could be considered “laying the groundwork,” with more specifics to come later. |
3. Financial outlook
| What to share | What to avoid |
|---|---|
| This is an opportunity to share your outlook on financial planning — such as how much you save versus how much you spend. Is your strategy to prioritize retirement savings, enjoying the now or perhaps a bit of both? You can also share your priorities on large purchases or vacations, and how much debt you feel comfortable holding. | Avoid any sort of judgment about these topics. Instead, be curious and accepting of others’ viewpoints, and appreciate the differences in priorities. |
4. Lessons learned — importance of education
| What to share | What to avoid |
|---|---|
| What strategies have served you well? Which ones haven’t? If you could do it again, what would you change? This could include goals you’ve prioritized, account types, contribution amounts or investing timelines. You also might share the importance of planning. | Don't assume your priorities and values are the same as those of your family members. Rather than framing the discussion with, “Don’t make the same mistakes I did,” try sharing what has or hasn’t worked for you personally. |
How Edward Jones can help
Family meetings work best when there is open dialogue, and everyone has an opportunity to share their thoughts. You may find that what you’ve learned from your family warrants revisiting or just confirming your own financial strategy.
Bring the topics that mean the most to you to your financial advisor. Together, you can confirm your strategy is aligned with your personal goals.
3 types of family meetings
- Basic — A high-level review of estate documents and the roles and responsibilities included in them. No finances are discussed.
- Closer look — A high-level review of estate documents and your financial situation. Includes discussions about account balances, net worth, etc.
- Deep dive — A detailed review of your estate plan and financial situation, as well as how you will distribute your assets and the estimated dollar amounts.