Family Finances: get talking
New research1 suggests young adults and their parents are becoming increasingly comfortable talking about money matters, which should ensure future generations are much better equipped to tackle their financial affairs.
Breaking the taboo
Historically, intergenerational discussions about finances have too often been viewed as a no-go area, but the research suggests UK families are beginning to open up, with young adults significantly more likely to have talked to their parents about the issue than previous generations. In total, three out of four 18 to 24-year-olds said they spoke with their parents about money matters when they were growing up; this compares to just four in ten over-65s and half of 55 to 64-year-olds.
Reaping the rewards
Experts have long advocated the benefits of families talking openly about financial affairs. Parents who do so are more likely to ensure their children are better prepared to deal with money matters when they reach adulthood, whether in relation to day-to-day spending issues or the need to develop longer-term savings habits.
Young wealth owners
The need for young adults to be financially savvy has perhaps never been greater, with a growing proportion of this generation now owning a considerable amount of wealth. Indeed, estimates2 suggest the number of UK Millennial and Generation Z millionaires has doubled over the past year and now stands at a record high of 2,000.
Keep talking
An increasing desire for families to discuss financial affairs is definitely a positive trend which should help the next generation realise the value of money and establish good financial habits at a young age. So, keep the conversations going to help secure your children’s financial futures.
1Royal London, 2022
2Bowmore, 2022
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.