Intergenerational financial conversations have too often been viewed as a no-go area, but new research suggests UK families are beginning to open up3 . Young adults are leading the way, with three quarters of 18 to 24-year-olds saying they have spoken with their parents about money matters when they were growing up; in comparison with just four in ten over-65s and half of 55 to 64-year-olds.
Beneficial all-round
These open conversations about money matters should ensure future generations are much better equipped to contend with their financial affairs. Experts have long advocated the benefits of families talking openly about financial affairs and parents who do so are more likely to ensure their children will deal better with money matters when they reach adulthood.
Young wealth
Whether discussions take place in relation to day-to-day spending issues or developing longer-term savings habits, the need for young adults to be financially clued-up has perhaps never been greater, with a growing proportion of this generation now owning a considerable amount of wealth. The number of UK Millennial and Generation Z millionaires has doubled over the past year alone and now stands at a record high of 2,000 (4).
A positive trend
An increasing desire for families to discuss financial affairs can only be regarded as a positive trend. Equipping the next generation to realise the value of money and establish good financial habits at an early age can help secure your children’s financial future, so keep talking. 3 Royal London, 2022, 4 Bowmore, 2022