In some households, it’s considered impolite to talk about money. But the consequences of imprudent financial management can be very serious. Poor money skills can result in crippling debt and personal bankruptcy.
But are you prepared to discuss your own finances with your kids? “Too personal,” you think, or “That’s none of their business!”
Perhaps. Your children may not need to know that you once bounced seven checks in a single day, or that you were denied a mortgage four times before finally getting approved. However, there is some financial information you should share with older kids, and that’s the basics of your will.
Whether you reveal your annual income or your monthly rent or mortgage payment is up to you. But your youngsters need to be aware of how you’ve planned to provide for your family if something happens to you and your spouse.
Many parents draw up wills when a child is born. If you did it with your first, remember to revise it with each additional child. And if you haven’t done it, do it today.
A lawyer can draw up a basic will for about $500, or you can write your own with the help of software, books and Web sites. Wills must be notarized to be considered legal documents.
Keep in mind that in the vast majority of families, the surviving relatives or guardians want to abide by the parents’ wishes, as long as those wishes are clearly spelled out. So, if you don’t have a will at the moment, write something down on paper immediately.
Financial expert Neale S. Godfrey has written 15 books, including the recently updated “Money Doesn’t Grow On Trees.” Her program “Your Money, Your Children, Your Life” has aired on public television.
