Women are not only becoming more responsible for the finances in their own homes, but they are passing on their knowledge to their own parents.
On Wednesday, Women & Co., a financial community for women backed by Citigroup, released research that found that two-thirds of women consider themselves the CFO of their households, and 86% of mothers say they are teaching financial lessons to their children. Surprisingly women also say they are sharing their financial know-how with their parents.
While talking about finances with parents isn’t easy, it’s better to have that discussion when they are healthy, instead of when they are already ill.
President and CEO of Women & Co., Linda Descano, has four tips to offer women who are thinking of diving into this conversation with their parents:
1. Know where your parents’ important documents are and ensure that they have the three most important documents in place: a living will, a durable power of attorney and a health care proxy.
2. Engage your parents in a discussion, with a financial advisor, to determine: their current assets and income, their current debt and spending (rent or mortgage payments, fees incurred when accessing retirement accounts, etc.), percentage of assets that are liquid, plans for covering medical and care-giving costs (Medicare, long–term care insurance, etc.).
3. Along with a financial planner, determine where they need help. Give your parents’ materials and identifying resources to assist them in addressing any issues.
4. Step back and evaluate how the process has been going. “Are the issues getting resolved? Are the conversations going smoothly? Are they happy with the way that everything is being handled?” Descano adds.