Boomer Parents Reveal Best 5 Strategies for Raising Financially Savvy Children
Research conducted last decade by Chase Bank and the University of Colorado’s Research on Consumer Financial Decision Making found out something interesting about baby boomers and financial discussions: The parents of boomers didn’t talk much about money with their offspring — but boomers themselves spent a lot of time discussing money with their kids.
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In fact, boomers made financial discussions with their kids as important as talks about the birds and the bees (though they held those discussions as well). Today, many boomers have reached retirement age, and their Gen X and millennial kids have kids of their own.
The lessons learned from money talks that occurred decades ago still resonate with younger people, many of whom are already much more financially savvy than previous generations. Separate research from Forbes found that nearly three-quarters of millennials (73%) and more than half of Gen Xers (57%) reported growing up in families that talked about money vs. only 41% of boomers.
Here’s a look at the five best strategies many boomer parents passed on in their quest to raise financially savvy children, based on various studies and personal testimonies.
Be Prepared
The famous Boy Scout motto also applies to financial education. One reason so many boomer parents held financial talks with their kids is so their kids wouldn’t go into the adult world not knowing the importance of budgeting and saving money. Among the best strategies passed down was how to make a financial plan for different stages of life, from renting your first apartment to buying a home, starting a family and preparing for retirement.
Study the Financial Markets
Some boomer parents spent a lot of time talking about stock picks with their kids and would often have the family watch financial shows on TV reviewing the day’s stock market activity. One millennial child of boomer parents told USA Today that from an early age she knew what percentage of each parent’s salary went toward their 401(k) retirement accounts.
Factor in Healthcare Costs
Researchers have found that boomer parents — especially women — stressed the importance of how rising healthcare costs can impact financial and retirement security. Many discussions centered on medical expenses.
Be Smart About Credit
Chad Lewis, a 36-year-old Northwestern Mutual private wealth adviser in the Chicago area, told USA Today that he has been talking with his parents about money since middle school. Many of those discussions centered on credit.
“We talked about things like credit cards, your credit score, making sure that you’re paying off cards on a monthly basis,” Lewis said.
Be Careful About Who You Trust
Boomer parents have put special emphasis on the importance of vetting people properly before signing a contract or paying money. These lessons proved especially useful amid the rise in online payments, financial apps and digital invoicing. Many boomers were in their late 30s to early 50s when e-commerce began to take hold and had kids still in high school or younger. Defending against online scams became a bigger part of the conversation.
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This article originally appeared on GOBankingRates.com: Boomer Parents Reveal Best 5 Strategies for Raising Financially Savvy Children
