5 People You Need To Talk Money With, According to Rachel Cruze
Money conversations can be uncomfortable, particularly with the people closest to you, but that's no reason to avoid them. According to Rachel Cruze, these types of discussions can help with future planning and support better financial habits.
Parents
Cruze suggested that, as parents age, it is important to have discussions about their financial situation, what plans they already have in place and their wishes to make sure they are taken care of properly.
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An essential conversation to have with parents is about their finances and end-of-life planning. One way to approach the conversation is to tell them about your end-of-life planning and inquire about their plans. Being patient, caring and understanding during the conversation with them is equally important.
Kids
Cruze recommends starting early discussions with kids about where money comes from. She also said that helping them learn with age-appropriate content and continuing to have discussions as they age about earning, saving, sharing, spending and investing will help them when they are out in the real world.
Getting started early helps children form strong money habits, including sticking to spending limits and thinking twice before making impulse purchases. Include them in decisions like checking the weekly grocery store ad to plan meals or giving them a shoe budget and helping them decide how to best spend it. Make sure to model responsible money habits around them. Children can also learn how to be responsible with money by earning an allowance for chores.
Partner or Spouse
Sit down with your partner or spouse and talk through where you both stand right now with debt, savings accounts, checking accounts and retirement, then plan a budget together where you both have a say in how the money is spent, Cruze told viewers.
Communication and compromise are key elements in any financial discussions you have with your significant other. Once you've reviewed your current finances, build a budget that supports your goals. Set short- and long-term targets together, decide how shared and individual accounts will be used and consider a licensed financial advisor for guidance on bigger moves like account changes, estate planning and retirement savings.
Friends
Cruze reminded viewers to check on friends by asking them how they are faring in the recent economy, and to be supportive.
One idea of how to approach talking about money with your friends is to include the topic in everyday life. Try asking what the budget should be for hosting a dinner party, or if anyone is using points to book vacation plans. Other ideas are to share what you have learned about money issues, or ask for advice about budgeting apps or requesting a raise.
Colleagues
Having colleagues in your life that you can speak with about their careers or salary, whether they work with the same company or not, is important, Cruze advised. She said those conversations can help you evaluate whether you should be earning more, exploring other career options, or considering whether a career change makes sense.
Money conversations with colleagues at work can feel uncomfortable, but they're important for your career and financial health. Do your research, stay professional, communicate clearly, and be open to feedback -- whether you're preparing to ask for a raise, or discussing salary or compensation gaps.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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