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Discussing Finances with Your Adult Children

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Many people may find discussing finances with their adult children to be difficult. Whether you may feel uncomfortable about discussing finances or you are worried about causing a rift – it is important to carry on conversations regarding finances, especially if it may affect the whole family.

Discussing finances with your children

Here are some of the more important discussions that you should have with your family members.

1. Financial Issues

If you are struggling in the finance department, you really should not feel embarrassed to let your children know that you aren’t as stable as you have been. If you need temporary help, your children may be a source of relief. However, the important thing is to not hide your financial trouble from you children and be honest about how you are doing, rather than internalizing it and going through it alone. If you are cash poor, but house rich, you may consider the option of doing a reverse mortgage. With a reverse mortgage, individuals ages 62 and older are able to use a portion of the equity in their home to help with their finances, without the need to make additional monthly payments to the lender.

2. Dividing the Estate

Whatever your plan is with dividing the estate, it is important to let your adult children know what your plans are. If you plan to divide equally, or unevenly to accommodate to your childrens’ needs – you should take the time to discuss the reasons behind the division. If you decide to go divide it unevenly, such as giving less to the child who is financially better-off and more to the child who is struggling, you should give them the opportunity to understand your intentions and to remind them that it is not about favoritism.

3. Scams

Scams tend to target retirees and older individuals, preying on emotions and vulnerability. While you may feel embarrassed that you had a lapse in judgement and fell for a scam – you should discuss with your family members what happened,  how much of your finances has been affected and if any actions need to be taken. Remember that your adult children could be a great resource for a “second opinion,” if you feel skeptical about unusual money requests.

4. Care Plans

As the population is living longer, it is important that boomers talk with their children now about what their plans are for long-term care. While you may feel strong and vibrant now, you may never know when the time will come when you need extra help. Long-term care costs will be heavy, and the best time to discuss it before the need arises, so that you and your family are able financially prepare. Whether you decide that you may want in-home care or are considering a nursing home, it is important to financially adjust to what you feel is best for you.

Reverse mortgages can be an option for those who are 62 years and older to help with their finances. If you or your loved one is considering a reverse mortgage, they can speak with a Senior Advisor at 1-888-QUALIFY.

Read Related Articles:

Reverse Mortgage Info for Children of Senior Parents

How Does a Reverse Mortgage Loan Affect My Heirs? 

Long-Term Care & Reverse Mortgages

Image courtesy of [jesadaphorn] / FreeDigitalPhotos.net

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