Many individuals have different ideas on how to manage their personal finances. This may be even clearer when dealing with families, as they could have conflicting views on when to talk about financial improvement.
Nearly 65 percent of parents and their children who are adults disagree when to talk about important financial issues, according to a report from Fidelity Investments. Many parents would prefer to discuss financial tasks with their children once they reach retirement, though a majority of their children felt that it was better to do this early on, before their parents were at higher risk of health problems.
"These discussions aren't always easy, but there can be real emotional and financial consequences when they don't happen or lack sufficient depth," said John Sweeney, executive vice president of retirement and investing strategies at Fidelity. "It's absolutely critical that families take the time and break down any barriers to sort through important matters related to retirement preparedness, caregiving responsibilities, estate planning and the tax implications of an inheritance. The alternative is putting these matters off until a crisis occurs, at which point the options may be limited and there could be unintended financial repercussions."
More than 55 percent of adult children explained that their parents are concerned about financial security, the report noted. However, less than one-quarter of parents agreed with this.
Americans value retirement planning responsibility
Getting prepared for the future may take a significant amount of work over an extended period of time. According to a separate report from Fidelity Investments, a total of 91 percent of Americans noted that it is up to them to learn how to properly save and prepare for their financial futures.
"Twenty years ago, many Americans were still depending on their company's traditional pension and retiree medical plans to finance their retirement needs," said Doug Fisher, senior vice president of thought leadership and policy development for workplace investing at Fidelity Investments. "Today's employees are being asked to assume more personal responsibility for their health and retirement savings – which can be empowering, challenging and even intimidating all at the same time."
Just 4 percent of those polled felt that it was up to their employers to give them the information needed to retire, the report added. Another 4 percent felt that it was up to the government to provide them these details.