There are awkward money questions, and then there's asking your parents about their posthumous financial plans. Talk about a tricky opener. Still, for many of us, the conversation is as uncomfortable as it is necessary.
According to a recent Charles Schwab survey, 53 percent of millennials believe are betting on an inheritance as part of their retirement plans. However, the same survey found that only one in five people actually receive an inheritance from their parents as expected. Grasping the reality of what to expect is one of many reasons to bite the bullet and address this sensitive financial issue. For some, gaining clarity is a way to better understand a parent's wishes, or prevent confusion down the road. For others, it might be more about present needs rather than future planning.
Whatever the reason, the important thing to remember is that your questions are just as important as their answers. So do yourself a favor and consider the following advice, courtesy of both financial and etiquette experts, before you broach the conversation.
How to Start the Talk
When approaching your folks, it's important to lay the groundwork so they have some time to consider how much they're comfortable sharing. "A good way to start this conversation is to reference a resource, such as a book or an article you read about the importance of estate planning," writes GoBankingRates's Cameron Huddleston. "You could share what you've learned or offer to let them read the resource themselves."
Another approach is to be more direct without catching them too off-guard. Suggest setting up a time to talk about the 'I' word and let your folks decide when and where to have the conversation. If they ask why you're broaching the subject, your best bet is to answer with a measure of practicality.
"My clients often say, 'My financial planner has been asking me this question, and I thought it would be relevant to you, too,'" certified financial planner and Brunch & Budget founder Pam Capalad tells The Week. If that's not an option, Huddleston suggests telling them you're looking into your own estate planning and wondering if they've done the same. This opens the door to a larger conversation without putting them too much on the spot.
Make Sure You're Not Creating Disharmony Within the Family
One concern your folks may have is betraying your siblings by only discussing the matter with you. "Do some one-on-one talks first, perhaps among siblings, or the parents with each child," Peggy Post, director of the Emily Post Institute, tells AARP. "But it's also good to get everyone together whenever possible, to make sure everything's out on the table and everyone is on the same wavelength. Even if families don't live close to each other, you can do a video (phone) call on FaceTime or Skype, or at the very least do a conference phone call. It's really good to talk individually and as a group."
The Questions to Consider
You might want to start with a broad ask: "Do you have an estate plan?" If they say yes, you might ask about how it works, rather than digging into the exact numbers. Another question you might ask is: "Are there any documents or resources I should know about in case of an emergency?" Specifically, ask about whether or not your parents have created a will, healthcare directive or power of attorney document that you might need to access, worst case scenario. If you really want to get in depth without touching too much on the actual numbers, check out this "inheritance checklist" containing a list of documents you may need to access one day. When asking your parents about such specifics, make sure you explain that you're just looking to protect their wishes first and foremost.
If You're Asking For an An Advance
It may seem like a long shot, but according to a recent Merrill Lynch retirement study, 77% of retirees now say it's better to pass on inheritances while still alive. Of course this all depends on your parents' financial situation as well as how you plan to use the money. Perhaps you're starting a business, looking to purchase a home, or helping to pay for college for a child of your own. Make sure the money you're asking for is intended to be used soundly and in a way that makes your parents feel secure and satisfied. While your parents might be happy to gift you with a portion of your inheritance, don't guilt them into it. "If you are sure that they are still competent to make this decision and can afford it, ask for a loan," suggests Philip Galanes of the New York Times' Social Qs column. "Let them decide whether to make it a gift." You should also consider asking for a small portion, rather than the entire sum—and if you have siblings, make sure you put any agreement writing so your parents don't have worry about potential disputes in the future. Remember, this isn't just about your needs but theirs as well.
- Rick Kahler: Inheritance Questions Kids Don't Ask Parents | Kahler ... ›
- 4 Questions to Ask About Your Inheritance | 1st United Credit Union ›
- Gifting Money To Children With An Early Inheritance ›
- How to talk to your parents about their estate without seeming like a ... ›
- Inheritance Etiquette, Talking to Your Family About Money and Wills ›
- How to have the 'inheritance talk' with your parents ›
- Is it rude for children to ask about inheritance? | Michele Hanson ... ›
- How to Talk to Your Parents About Your Inheritance | GOBankingRates ›
- Can I Ask My Parents for an Advance on My Inheritance? - The New ... ›
The National Financial Educators Council (NFEC) surveyed young adults in 2017 and asked them what high school level course would benefit their lives the most.
The majority responded that money management was the course that would be most beneficial.
With personal debt is at its highest record and COVID-19 threatening to have the hardest economic effects on youth, understanding money and finances is an important life lesson that should be taught to children at a young age.
The following is a list of the best financial literacy lessons and tips to teach children throughout different life stages.
I thought I had a pretty good handle on my finances out of school. I worked several jobs while attending university and had little to no problem managing my income. However, once I graduated, I realized how much more complicated personal accounting could really be.
There were so many variables I needed to keep track of. Biweekly bills, monthly charges, and general necessities amounted to a heap of confusing numbers that were often impossible to decipher. The funniest part was that I was actually trying to do this by hand (I don't know what I was trying to prove to myself, either).
After messing up for the 17th time, I decided to give Microsoft Excel a shot. I used Excel a bit in school and I knew all the big-wig finance people used it, so what could I possibly have to lose? The answer is about six hours of my precious time. Excel isn't much of an improvement over handwriting and it's still dependent on the user to manually input all of the information. It's like doing everything by hand with the slightest help, meaning that it still required a tremendous amount of time and concentration. Well that was all for nothing, I guess.
It's sort of funny. I was certain that I could manage my personal finances with ease, when it's practically a full-time job. I was already stressed out enough with my first job and I knew I didn't have enough time to give my finances the attention it deserved.
That's why I decided to try out a budgeting app. My best friend told me that he uses an app called Truebill to manage his finances. "What does it even mean to manage your finances?" I asked him. He told me that Truebill was the personal financial assistant I wished I could have. It could aggregate all of my account information into one place and give me specific insights and actions.
I loved the idea of having full control over my finances, especially during a time of financial uncertainty, and I realized that Truebill would be the easiest way to accomplish this. The user interface is incredibly simple and intuitive, so it doesn't even feel like a finance app! Truebill offers a multitude of features, with their most popular being the ability to cancel subscriptions with the press of a button.
Okay, I had no idea how many subscriptions I was still subscribed to. In fact, I wasn't even using a quarter of the subscription services I was signed up for. Subscription boxes, streaming services, my old gym, and even an old subscription to my favorite magazine--it was all there and I was livid. How could I let myself waste all of this money and how did I never catch this? Thank goodness for Truebill.
Truebill also offers bill negotiations. There is a 40% fee based on how much you save and Truebill even claims that there is an 85% chance that they'll be able to lower your bill once a negotiation is requested. Why wouldn't I take them up on this? There was zero risk and I would only have to pay once my bill was lowered (which means that I would be saving money regardless).
More standard features of Truebill include the ability to generate a credit report on-demand and even request a pay advance. I only used the pay advance feature once when I wanted to buy a gift for my mom, but didn't have enough cash in hand and Truebill automatically reimbursed itself when I got my next paycheck.
The credit report is another fantastic feature and practically taught me what good credit meant. Truebill's credit report basically shows you which financial decisions have the most significant impact on your credit score and ways that you can improve your credit month-over-month. I've never had such control over my credit and it feels good.
I'll be the first to admit that I was extremely naive coming out of school. I figured that as long as I was attentive, I could manage my finances with ease. We manage money to some extent throughout our entire lives, but once you're thrown out on your own, it's a completely different story. With Truebill, I've finally been able to take control over my finances and stay on top of all of my responsibilities.
My buddies and I always try to make it out to a game, but we never really care which one we end up at. Obviously we have our favorite sports and teams, but it was rarely about what game we went to or who we saw playing. It was about watching the game live.
In the early months of lockdown, all we had was Korean baseball, and trust me, we loved it. The only issue was, none of us had any idea what the commentators were saying. Even then, a few of my friends weren't huge fans of baseball. They were into sports like football and basketball, ones that moved at a quicker pace with less down-time in between plays.
We decided to see if there were any other events going down and came across horse racing. Yes, horse racing. It was perfect--short, fast-paced, and most importantly, an opportunity for betting.
I had never really considered watching a horse race any time other than the Belmont Stakes, but the prospects of the sport seemed exhilarating. Even better, with horse racing we knew we could still recreate the atmosphere of a race track. Salty snacks? Check. Stale beer? Check. A simple and easy way to bet? Check.
One quick Google search later, we came across TVG, powered by FanDuel. It's an online betting platform that takes you right to the heart of the action. We were a little apprehensive about using a mobile app to place our bets, but TVG's ability to bet on live horse races from all over the world was too good to pass up.
Here are 5 reasons why we are obsessed with horse racing thanks to TVG:
1. Betting has never been easier
Use your phone or computer to watch and bet on live horse races in real-time. TVG offers a bunch of features to make betting even simpler--live odds and handicapping tips leverage recent learnings to help you make your best bet. Not to mention, TVG's exclusive race content and wagering guide offers an under-the-hood look into the strategy behind horse race betting.
2. The biggest selection of horse races out there
If you're looking to drop a little dough on a horse race, chances are your best option is your local race track. But watching the same few horses races over and over again isn't the most exciting thing. With TVG you have access to over 150 tracks worldwide with races happening consistently throughout the day.
3. Get a generous sign-up offer when you place your first bet
Once you register your account, you will be eligible for a $200 risk-free bet. All you have to do is place your first bet and you're covered. If you happen to lose, TVG will insure you for up to $200 as a sort of wagering credit. I may have been a little trigger happy when placing my first bet, so having this insurance was a great perk. There are also a bunch of promotional offers available year-round.
4. Making deposits and cashing out at the touch of button
With a ton of payment options such as PayPal, BetCash, debit/credit, wire transfers, and other third-party services, making a deposit is a breeze. But what about the payout? Depending on your deposit method, your withdrawal will be available in a few days. No more waiting in-line to collect your winnings!
5. Watching live races with your friends while betting is exhilarating
Even when we were watching Korean baseball, Zoom calls with my friends were a little dull.
With TVG, we haven't had this sort of fun in months! Every weekend we'll turn on a race and throw our bets in. After a few races, and quite a few drinks, we'll tally up our winnings to see who won the most! Sometimes it's not even about making money, but just having a good time.
TVG is the perfect way to add a little excitement to an otherwise mundane afternoon. It introduced me to the world of horse racing, a sport I never would have considered otherwise.
The races just keep ramping up and thanks to TVG, I can always get in on the fun.