After being in the business of helping people with their finances for over 30 years, I’m convinced that a lot of the problems people have with managing their money comes from a lack of communication. Money affects every aspect of our lives, and yet for most families it sits there like an elephant in the room. Everyone sees it, but no one wants to talk about it.
The lack of conversation between spouses about money is one that I really don’t understand. Most often this is what I hear when I ask why they don’t talk about money:
“It will cause stress.”
“It will lead to fights.”
“He/She doesn’t know anything.”
“He/she isn’t interested.”
“That’s his/her job.”
“It will come between us.”
Maybe it’s just me, but I’ve always viewed marriage as a partnership designed to create a successful family and to navigate the waters of life. I’m a partner in a business, and as such, I am very interested in the business and I want to know and educate myself about all aspects of the business. It may be someone else’s job or responsibility, but I want to know and be in the loop about the finances of the business. And there is no doubt that around budget time for the next year, the stress level might be a bit higher. But all four of us partners have a common goal in mind…the success of Legacy Wealth Management.
We also tend to not discuss money with our kids.
“They’ll discuss it in the wrong company.”
“If they know how much we have, it will hinder their ambition.”
“They will worry about our situation.”
It’s very tragic to send our kids into the world without any knowledge or experience with money. If we don’t talk to them about it, how are they going to learn that throughout their lives money issues will play a big role. If times are tight, they need to know that and help by tightening their belts like mom and dad. If things are good, they need to know that, because of the parent’s efforts at work and good money management practices, mom and dad have been able to provide for the family. They need to see and hear mom and dad working as a team on the family finances.
The elephant in the room (money) isn’t going away. It’s important that we discuss the issues it brings up and help spouses and kids to understand where the family ship stands, financially.
These are the opinions of Mike Berry and not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice.
Mike Berry is a Registered Representative offering securities through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Legacy Wealth Management, LLC and Cambridge are not affiliated. Cambridge does not offer tax advice.
Copyright ©2018 Mike Berry. All Rights reserved. Commercial copying, duplication or reproduction is prohibited.