Boomer women (those born between 1946 and 1964) are talking more about money with their children, while the boomer men are more likely to help adult children with expenses, especially car purchases and expenses, according to a recently released study. Boomer women are more likely to have discussed finances with their parents and with their children according to the study released by Ameriprise. Five years ago, less than half of the women surveyed had those discussions with parents. Even fewer had the money discussion with their children.
A surprising 93% of boomer women reported that they had helped a parent financially. Women were more willing to discuss finances, health care and family issues with relatives. This trend even carried over to their daughters, who reported that 2/3 have regular discussions about money with their own families. Not surprisingly, the daughters reported more worry about their parents’ finances – almost two-thirds are worried their parents won’t have enough income in retirement. At the same time, daughters were more likely to help parents with chores like laundry and shopping.
At the other end of the spectrum were the boomer fathers, who were more willing to help an adult child buy a car or pay off credit card debt than were willing to fund their own retirement plans. Those same boomer men are much less likely to discuss finances with their parents. The most common reason? They don’t feel like it is any of their business.
The women surveyed this time were keenly aware of the probability that they will outlive their partners and that health care costs continue to rise. That could be part of the motivation to have these money conversations with their parents and children. Another part of the motivation may be the number of college graduates moving back home to live with parents, unable to find a career-type job after college and saddled with student loan debt.
Don’t let money fears keep you up at night. If you are concerned about income in retirement, give me a call. As a fee-only Certified Financial Planner™ I can help you fund your retirement or any other financial goal you may have.