By Skyler McCool
Manager, Tax Services
Email Skyler
Finances affect people differently across various generations. While members of Generation Alpha (ages 14 and under) are just now starting to earn their own money, Gen Xers (44-59) are preparing for retirement.
Finances are usually a source of anxiety for most people, but ripping the Band-Aid off and talking about them is the best way to deal with money matters.
Having said that, studies show that more than 30% of parents never speak to their children about finances.
“It seems like a herculean task … to teach your kids about money when you don’t really feel comfortable about the topic of money yourself,” said certified financial planner Tom Henske.
An easy starting point is the introduction of an allowance, which “studies show is a precursor to financial success in adulthood” — according to Farnoosh Torabi, host of the So Money® podcast.
In a recent Today Show segment, Torabi added that “financial fear loves to thrive when there is a lack of knowledge and education.” People across all ages can fill knowledge gaps by listening to podcasts like So Money®, taking an economics or personal finance course, or reading the Sponsel newsletter and talking to financial advisors like us.
With older adults, the gaps in their financial literacy tend to involve technology, which can make them fall prey to phishing scams. In 2021, the FBI’s Internet Crime Complaint Center received nearly one million complaints with reported losses of roughly $6.9 billion — approximately $1.7 billion of which were losses of victims over the age of 60. Next time you visit your parents or grandparents, maybe show them a typical scam message on your phone so they can identify fraudsters trying to steal their financial information.
The bottom line is that we need to talk more about finances, especially since they’re such an essential part of our everyday lives. Hiding from them only leads to gaps in knowledge, which can lead to debt and stress. Talking dollars makes sense.
If we can assist you further with your financial matters, please contact us at 317-608-6699 or email Skyler.