Talking Money with Your Young Adult Child: 5 Ways to Invest in Their Financial Future

May 10

Parents often try to impart knowledge or wisdom from their past experiences to their young adult children. It can be frustrating when that advice goes unheard or is not acted on. This is especially true when it comes to the topic of personal finance. Here are 5 effective ways to guide your young adult towards smart financial decisions in their 20s and 30s:

1. Lead by Example: Share Your Financial Journey

Your financial habits have a profound impact on your children. Open communication about your own financial journey – successes, challenges, and lessons learned – sets a powerful example. Discuss your budget, savings goals, and how you make financial decisions. This transparency with your young adult children fosters trust and shows them the real-world application of financial concepts.

2. Empower Them: Gift them the Wisdom of a Financial Advisor

Help them find a qualified advisor who specializes in their age demographic. Gift them one year of service to kick-start their personal financial journey. It is an incredible investment for your young adult’s future and makes a great holiday gift substitute. A good fee-only advisor specializing in their age group will be a guide as they navigate decisions and add accountability to their financial journey.

3. Active Listening: Make it a Conversation

Tempering your "advice" and actively listening is crucial. Young adults crave independence and may resist what feels like dictation. Shift your approach to a conversation. Ask questions and get curious. This collaborative approach fosters trust and increases their receptivity to your guidance.

4. Celebrate Milestones, Big and Small

Acknowledge and celebrate their financial achievements! Did they reach a savings goal? Pay off a credit card? Landed a new job? Recognition reinforces positive behaviors and motivates them to continue making wise financial choices.

5. Invest in Their Future: The Gift of a Financial Foundation in Marriage

Consider a unique wedding gift – marriage counseling that includes a financial component. This can be a fantastic investment in their future, equipping them with tools to navigate finances as a couple.

By implementing these steps, you can create a foundation for open communication about money and empower your young adult to make sound financial decisions throughout their lives.

Holcomb Financial specializes in providing financial advice & investment management services to millennials and small business owners. We provide wholistic life advice empowering our clients to life a full life today while preparing for the future. Clarify your financial future & gain the confidence to thrive today! Schedule a free call