Let’s face it, every family knows they should have conversations about money. The problem is that most people don’t know how. Where do they start? What do they want to accomplish? How do they broach difficult subjects? That’s where Financial Advisors have a unique opportunity to step in and help families proactively address this topic. Using Money Sanity Solutions: Linking Money + Meaning as a springboard to launch those vital conversations, you can help get families to start thinking, talking, and doing money in new ways.
Here are some ideas for how to use Money Sanity Solutions with your clients and perspective clients:
1. Organize discussions around meaningful events.
Select times of the year that have a meaningful connection to the topic to start these conversations with your family clients For example, a family client meeting in the summer provides an excellent opportunity for you to discuss the “Back to School” chapter in Money Sanity Solutions. Use the Back-To-School Spending Plan exercise to help the family open up a dialogue about distinguishing needs from wants and create a back-to-school budget. Respectfully discussing money choices and values will yield lifelong financial lessons.
In the summer, reference the “Vacations” chapter, or at a meeting around the holiday season you can lead a discussion structured around the “Gratitude and Greed” chapter. It’s remarkable how introducing these questions, tips, and worksheets can help diffuse tension within a family and create a positive outcome.
Here are a few tips for leading these discussions with clients
- Introduce one chapter / topic per meeting.
- Encourage multi-generational participation – ages 10 and up
- Include grandparents in the conversation when possible
- Set up the next meeting before you leave.
- Be sure to circle back with your clients to follow up on the conversation.
2. Be The Sane Middle
When it comes to talking about money, so many families are on extreme ends of the continuum—silence where money is never talked about, or loud voices where fighting and dictating is commonplace. You have the unique opportunity to help families to get to “The Sane Middle.” As a trusted third party, you have the opportunity to bring a neutral voice to a potentially weighty topic.
When families are tentative about discussing money it could stem from past issues, complicated relationships, or power struggles. By facilitating a well-structured discussion with Money Sanity Solutions you can help neutralize some of the emotion. Your presence will encourage everyone to use their nice, inside voices, which provides some space for family members to have more thoughtful, productive conversations.
Tips for facilitating family money conversations
- Thoroughly review the chapter prior to meeting.
- Come prepared with a structured discussion plan in place.
- Utilize our free Money Sanity Solutions Facilitator Guide.
- Encourage everyone to participate.
- Remain neutral.
- Keep the discussion moving.
3. Link the Interaction and Transaction
You spend countless hours executing the transactional side of a family client’s plans and goals. But be sure to give equal weight to the interaction part of the process. Not only will it help families reach their ultimate goals, they will be grateful that you were able to help them address a variety of money topics that are essential for current and future generations.
It’s often more comfortable for a client to say ‘I want to do x, y, and z as part of my transactional plan, but at some point it’s vital to engage them in conversations that are pertinent to the plans that they’ve laid out. Help them understand that the success of their plans could hinge on their ability to communicate with their family about the why behind the plans. The why could make all the difference.
Add value by emphasizing to your clients and perspective clients that you will help them deal with a variety of money issues, beyond the transactional.
The goal of Money Sanity Solutions is to give you a framework around which you can help clients talk more effectively about money. It’s difficult to find good solutions without talking openly and honestly about challenges and concerns. Whether it’s between spouses, siblings, or up and down the generational ladder, it’s vital to start talking.