ST. LOUIS, Nov. 13 /PRNewswire/ -- This year, families gathering during
the upcoming holiday season may be more concerned and focused on their
financial future than ever before. And a tough challenge they could face is
how to talk with each other about financial matters, what questions to ask and
what pitfalls to avoid.
A national survey sponsored by Wachovia Securities, LLC has found that
when families gather for the holidays they are more likely to talk about
politics, sports or what's on TV than long-term financial matters.
Only three of 10 respondents to the survey, conducted by Richard Day
Research Inc., acknowledge ever having discussed financial plans at a regular
family gathering or at a meeting called for that purpose, but nearly two
thirds believe that their family is aware of their preferences regarding
finances. There is peril in that assumption, said Brian D. Carpenter, Ph.D.,
associate professor of psychology at Washington University in St. Louis.
"Family members often assume they know about each other's financial
situation and preferences," Carpenter said. "But then some crisis arises in
the family, and people realize they don't know as much as they thought. Or
what they thought they knew turns out to be inaccurate. Rather than relying on
assumptions, families benefit from talking with each other about their
circumstances and sharing important documents."
People who communicate about money with family members have distinct
advantages, Carpenter noted. "Families that know about each other's financial
status, life goals, priorities and desires tend to be better prepared to make
informed, rational decisions during a crisis or major life event."
The survey of 1,200 American ages 25 and older revealed:
-- Privacy and embarrassment are two key factors preventing family members
from having conversations about money and financial planning.
-- Nearly four in 10 said that finances are private, even among family.
-- Social and financial differences among family members also inhibit
financial conversation, and lack of financial know-how also appears to
be a barrier.
-- There were minor differences in responses along demographic lines. More
affluent and college educated respondents were slightly more likely to
talk to families about finances. Women indicated more hesitancy
regarding family financial talk than men.
-- Of the survey respondents who reported having participated in a family
financial discussion within five years, only a quarter said the meeting
had occurred without the impetus of a major life event.
-- The most common occurrences prompting family financial conversations
were job or business transition, illness or major surgery, death of a
family member, or preparation of a living will or estate plan.
Kortney Christensen, director of Life Event Services at Wachovia
Securities, said, "Particularly during these volatile economic times,
dialogues about changes in life plans and financial status -- or even a
conscious decision to change nothing and ride out the present upheaval -- can
help make everyone in the family better informed and more secure."
Christensen, CPA and CFP(C), manages a group that assists financial
advisors and their clients on issues such as Social Security, executive
compensation, tax planning, estate planning, and education planning. "Family
financial talk can strengthen relationships, bring peace of mind, and ensure
more positive outcomes," she added.
The Web site www.familyfinancialtalk.com and a 54-page booklet -- "Talking
with Loved Ones about Money ... A Financial Guide" -- available on the site
provide help on how to begin the family conversation, topics to discuss and
preparations for talks.
The Web site, sponsored by Wachovia Securities, includes tips and examples
to guide families before, during, and after the money conversation, as well as
key topics to consider. The booklet includes chapters on Talking with Adult
Children about Your Finances, Talking to Adult Children about Their Finances,
Talking with Elders about Their Finances, as well as a helpful resource guide.
About Brian Carpenter
Brian Carpenter, Ph.D., is an associate professor of psychology at
Washington University in St. Louis. He has focused his research on family
relationships in late life, with an emphasis on how family members work
together to make decisions. Other studies have examined how well adult
children know what their older parents want. As such, his work inevitably
brushes up against financial issues and preparations.
About Richard Day Research
Richard Day Research is a leading full-service market research and opinion
polling firm headquartered in Evanston, Illinois. The company serves
corporate, government and not-for-profit information needs in the U.S. and
globally.
About Wachovia Securities
One of the nation's largest full service retail brokerage firms with $1
trillion in client assets, Wachovia Securities provides financial advisory,
brokerage, asset management and other financial services through more than
18,000 registered representatives in over 4,000 locations nationwide.*
Wachovia Securities is the trade name used by two separate, registered
broker-dealers and non-bank affiliates of Wachovia Corporation providing
certain retail securities brokerage services: Wachovia Securities, LLC, member
SIPC, and Wachovia Securities Financial Network, LLC, member SIPC.
*As of 9/30/2008. Assets, registered representatives and locations include
Wachovia Securities and A.G. Edwards brokerage offices as well as selected
Wachovia Bank financial centers. A.G. Edwards is a division of Wachovia
Securities, LLC.
