Even if you don’t wish to go line by line through your household incomings and outgoings, or to produce a household budget – both of which can be very useful for financial planning – there are several key areas you really should look to discuss with your family if at all possible.
The standout is, of course, your Will, considerations around power of attorney and planning for a situation where you may no longer be able to work. All of these elements are designed to ensure that your family will not suffer undue financial strain in the event of your death or a serious injury or illness. All of these things are very easy to put in place, as well as being comparably cheap, meaning your family can be protected quickly and easily.
Around these considerations, it is also worth having a discussion about your own and your family’s long-term financial goals, potentially in the company of a financial adviser. Discussing where you want you and your family to be in the future is a good way of establishing financial plans and apportioning savings to real-life outcomes, rather than just to have them saved for the sake of it. Are you looking to move abroad? Pay for your children’s education? Make a big property purchase? All of these things can help to shape your household finances, as you work towards a visible end goal.
A final area to consider, which many families consider too in-depth but which can see your household achieve huge savings, is taxation. Involving older and younger generations in this discussion can not only help with everyday taxes such as income tax but also with inheritance tax. With various allowances, being open and honest about your finances can mean that your whole family takes advantage in all areas.
Sources: www.thisismoney.co.uk
