One feedback we heard from our London 2016 Forum attendees was that they wished they could have attended more (if not ALL) of the breakout sessions. So we thought it would be useful to summarize the key takeaways from a different breakout session each week, focused on a topic relating to how to manage money around major life events.
This week, we share the collected group wisdom on "How to Manage Money with Family/Partners/Kids", led by Anna Sofa of Addidi Wealth.
- Focus on Setting Shared Goals. Your partner or loved one can have a very different approach to money than yourself. There is no one right approach, but do set aside time to agree on what's practical for both of you and will get you to your shared goals. For some it may be separate accounts, plus a joint account for certain expenses. For others, it may be joint accounts with agreed spending limits and target savings levels. Communicate and agree on what you're comfortable with and keep communicating to make changes as needed in the future. Note: if you are a caretaker, you deserve to be paid for care-taking/domestic work (talking to you stay-at-home moms). Value your own contributions to the family.
- Be Sensitive to Generational Attitudes Toward Money and Discussing Money. Many elderly parents are actually relieved to be able to open up about death and their plans for after they pass. Opening the discussion around setting up a Living Will can help pave the way to discuss the sometimes more complicated conversation around passing of assets.
- Managing money with kids: there are different ways of setting up ISA's (Independent Savings Accounts) and Trusts to control when your children can access the money. Be aware that an ISA in your child's name automatically gives them control once they reach legal age at 18. Are you sure you want your children to have access to money at an early age? What boundaries might you want to set for children so they understand your intentions for how they are to use the money?
What are your thoughts? What advice can you share from your experiences managing money with family? Please share your thoughts with us on Facebook here.