• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Shuriken Consulting

beyond the numbers

  • Pay your Bill
  • Tax Calculator
  • Contact Us
  • About
    • Privacy
  • Webinars
    • ATO Targets Cash Business
  • Services
    • Setup
    • Company Setup
    • Education
    • Finance
    • Insurance
    • Compliance
    • Bookkeeping
    • Tax and Accounting
    • Cloud Accounting
    • SMSF
    • Growth
    • Advice
    • Business Structure
    • Business Valuations
    • Wealth Team
  • Digital
  • International
  • Locations
    • Sydney CBD
    • Hornsby
    • Dural
    • Manly

Jim Mills / June 14, 2017

Do You Talk About Money In Your Family? Three Reasons To Do It

talk-about-money

How often do you talk about money with your family?

Most people shy away when it comes to the topic of money. I know money can be quite an emotional and sensitive topic for many people.

Why do people avoid to talk about money?

I’ve heard so many reasons for avoiding money-talk such as: “If my family finds out about our true financial situation, they might get lazy and become entitled.”

I’ve heard so many reasons for avoiding money-talk such as: “If my family finds out about our true financial situation, they might get lazy and become entitled.”

I’ve also heard people fear that an honest talk about money might create a conflict in their family.

I beg to differ.

Discussing money issues with your family can allow you to share any pieces of financial wisdom you have may have with your loved ones. There must be a lot of valuable lessons you’ve learned along the way from your financial ups and downs.

In other words, you can pass on your financial literacy to your children. From my experience, there is no greater legacy than a healthy attitude towards money.

Let’s find out more about the benefits of financial literacy for your family.

The importance of financial literacy

Financial literacy is broadly defined as, “the ability to understand how money works in the world.”

Specifically, it refers to a combination of financial knowledge, skills, attitudes and a set of behaviours that determine your ability to make healthy and responsible financial decisions for your well-being.

A healthy attitude towards money is a rare thing. It is an acquired skill. Some will learn from their role models, some will learn on their own and some will never learn!

Choose to be the role model of financial literacy in your family – don’t be afraid to talk about money.

You may also be interested in: Why Is Your Home Your Castle?

The benefits of financial literacy
There are a number of benefits that come from correctly understanding how money works.

The benefits can be summed up into five key behaviours a person will adopt in relation to their assets.

  1. Keeping track of finances which includes a variety of approaches to managing daily expenses
  2. Planning ahead for short, medium and long term. This includes also planning for your retirement and even beyond that.
  3. Choosing to invest. This means researching and understanding different investment options while realising the risks involved.
  4. Ongoing financial learning which includes staying informed and being able to use that information
  5. Financial control means the ability to save and manage debt.

Financial statistics show a sad reality when it comes to money habits: about 70% of wealthy families lose their wealth by the second generation, and a stunning 90% by the third. It’s pretty clear that second and third generations have a low level of financial literacy.

You may not consider yourself a wealthy person but your own truth about money is a valuable legacy to pass on to your children.

Lessons about money don’t always have to translate into actual money!

How can you pass on your financial literacy to your loved ones?

Easy. You talk about money. You don’t avoid the subject anymore. How?

  • You can start by having an honest discussion with your family about what are your expectations of them as beneficiaries.
  • Share with them how you managed to accumulate your wealth, including specific strategies.
  • Encourage your family members to seek professional advice about their current financial situation. It will help them understand their financial circumstances better. It will also prepare them for handling their inheritance in the future.

You may also be interested in: The SMART Way To Plan Your Budget

I hope you have an accurate understanding now of how financial transparency can have a valuable impact on your family.

Remember, money-talk is healthy talk.

The financial and wealth specialists at Shuriken Consulting are ready to assist you in determining the right approach to your wealth or retirement planning. Get in touch today.

contact-shuriken-today

Filed Under: Wealth Management Tagged With: financial literacy, wealth, wealth management

Primary Sidebar

Recent Posts

  • August 2021 Tax And Accounting News: All You Need To Know
  • Exclusive Probians Offer
  • Tax & Accounting Questions Answered Free for Probians
  • Government support for your business
  • Succession Planning for Small Businesses

B1G1

“Imagine if every time you made a step forward in your business, it had an unimaginable impact on the lives of others…”

Footer

Services

  • Company Setup
  • Education
  • Finance
  • Insurance
  • Bookkeeping
  • Tax and Accounting
  • Cloud Accounting
  • SMSF
  • Advice
  • Business Structure
  • Wealth Management
  • Business Valuations
  • Digital Marketing
  • Shuriken International
  • Events

About

Shuriken is at the forefront of accountancy, providing clients with a broad range of services, coaching and mentoring.

Contact Shuriken if you want to launch or grow a business or if you want to get a clear action plan on how to achieve your financial goals. We can help with benchmarking, cashflow forecasting, payroll and much more.

Learn More

NSW Business Chamber Member

Contact Us

Sydney CBD

T: 1300 886 066 or (02) 9114 8544

Hornsby

T: (02) 9485 3400

Dural

T: (02) 9651 2288

Endorsal

  • News
  • Events
  • FAQs
  • Contact Us
Terms of Use Privacy Policy Disclaimer