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Talking to Adult Children About Money truggles By Paul D. Guerra ++++++++++++++++++++++++++ +++ + +++ + ++++++++++++++++++++++++++ ❮ FINANCIAL PLANNING IF YOUR CHILDREN ARE among those going through a lean period in their career or personal lives, the first step to helping them get back on their feet is to have a positive, productive conversation about money and how to manage it. It also may help to know you're not alone when it comes to helping your adult children financially. According to a Pew Research Center survey, roughly half (48 percent) of adults ages 40 to 59 had provided some financial support to at least one grown child in the past year, with 27 percent providing the primary support.* Set the Stage for a Positive Conversation The way you talk to adult kids about money can make a big difference in the outcome of the discussion. Your approach also sets the tone for future conversations about financial matters. Make sure your first money talks aren't critical or crisis- driven ones. Instead, start by sharing factual information, like an interesting article about portfolio construction or the concept of diversifying risk. Share something about your own financial life. Talk about a decision you're thinking of making or a subject you're trying to learn more about. Invite your child to share his or her own perspective. You can approach more sensitive money subjects later — after you've set a strong, respect- ful foundation. When they do share personal financial information, don't be judgmental. Listen thoughtfully. And when you do respond, resist the urge to criticize or lecture. Share your own similar experiences, and admit your own mistakes. Ask if there are ways you can help — it may not be only with money. Share Your Experiences Open up to your adult children and share your own financial experiences. Talk about your struggles with money when you were starting out. Explain how you were able to achieve a financial goal. Share a financial mistake you made and explain how you recovered. Talk about financial help your parents may have given you. Remind your child it's never too early to start planning for future goals and retirement. An honest discussion may show your adult child why you feel it's important to talk about this sensitive topic. Come Up with a Plan Together Once you and your child have discussed his or her financial situation — including earnings, savings, debt, 401(k), etc. — work up a plan to: + Pay off high-interest debt + Create a budget + Set a time frame for achieving specific financial (and other) goals + Decide how much can be allocated for saving and investing Keep in mind it's often easier for adult children to talk to a professional about their finances than it is to talk to their parents. Offer to arrange a meeting with an advisor and your son or daughter. Advisors understand the concerns of people with adult children and can offer guidance, assistance, and planning tools to help with your family's financial concerns. *Pe w R esearch Center, p e w r e s e a r c h . o r g / daily-number/the-sandwich-generation-burdens-on- middle-aged-americans-on-the-rise/ Paul Guerra is the managing principal of Brookshire Wealth Management in Canton, Ohio. For more information, vis- itbrookshirewealth.com or e-mail Guerra at paul.guerra@wfafinet.com. Investment products and services are of fered through Wells Fargo Advisors Financial Net work , L LC ( W FA FN), Me m b e r SI P C . B r o o k s h i r e We a l t h Management is a separate entit y f rom WFAFN. Wells Fargo Advisors does not provide legal or tax advice. Be sure to consult with your tax and legal advisors before taking any action that could have tax consequences. Please consult your legal advisors regarding your fiduciar y duties. Wells Fargo Advisors Financial Network, LLC, Member SIPC, is a registered broker- dealer and a separate non-bank affiliate of Wells Fargo & Company. ■ YOUNG ADULTS FROM ALL ECONOMIC BACKGROUNDS HAVE BEEN LIVING WITH THE REALITIES OF A CHALLENGING ECONOMY, LIMITED JOB OFFERS AND INCREASED LIVING EXPENSES. 2 0 1 5 S E P T E M B E R /O C T O B E R ■ M D N E W S . CO M ■ MD NEWS Cleveland/Akron/Canton | 3 1