When was the last time you talked with your parents about their money? (I saw you roll your eyes!!!!!!)
Maybe the very thought of having that conversation intimidates you, or maybe you’ve tried and it didn’t go well. You’re not alone! Many people put off these discussions for fear of a negative response. Nobody wants to upset their parents or cause friction within a family!
However, as someone who wants what’s best for you and supports the journey you’re on, I’m going to give you some tough love: Take a deep breath, be an adult, and do it!
Here’s a couple reasons why it’s so important:
- What they do with their money WILL affect you in one way or another.
- Having tough conversations now is the ONLY way to guarantee your parents’ wishes will be honored later.
The 4 Key Questions to Ask:
Rachel Cruz, daughter of financial expert Dave Ramsey, outlines 4 key questions to ask your parents right now about their finances.
- Do you have a Will?
- A Will is a legal document that states what happens to your things when you die.
- It makes sure your wishes are honored.
- It also prevents unnecessary conflict between family members
- Do you have Long Term Care Insurance?
- This insurance pays for a nursing home (assisted living) or home care when parents can no longer care for themselves
- Dave Ramsey recommends buying this by age 60!
- What is your overall debt picture?
- Do you have debt?
- What type of debt? Mortgage? Credit Cards? Medical Bills?
- After they pass away, what they OWN minus what they OWE comes into play!
- If your name is on any debts you’ve co-signed, YOU are liable!
- Do you have Term Life Insurance?
- This is a policy you take out where, in the event something happens to you, your family will be taken care of financially.
- You decide the amount you’ll be insured for
It’s not about the money!
It’s important during these conversations that you communicate you’re not discussing this because “we want your cash” and “you’ve already pictured your new Tesla in the driveway”!
Let them know it’s because you want to take care of them and pass on their legacy as best as possible. Additionally, you’re doing this for the betterment of the relationships of their children. These discussions alleviate stress and fighting during difficult times when emotions are already high!
Coffee With Mom
Tennessee pastor Mike Glenn wrote a book called “Coffee With Mom”. It’s about the daily discussions he had with his elderly mother as they shared a cup of coffee. They were fortunate enough to have their affairs in order and open lines of communication regarding finances. He stated in an interview:
“The choices you have to make are never easy. If you put your family in a situation where nobody knows…or they “think” they know…or maybe there was a conversation where you might have said something one time… there will be problems. But honestly, if you love your family, sit down with them! Write it down!”
You got this!
Be bold. Be brave. Know that you’re doing the right thing! Sit down with your parents and ask them these 4 questions. You might be surprised at where the conversation leads and the peace that each party feels afterwards.
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