Money Not Openly Discussed In Families

A news release about the Ameriprise Financial Money Across Generations study said the research found that adult children of the boomers are more likely than their parents or grandparents to say their family regularly talks dollars and cents.

Some 46% of adult children of boomers say their family regularly has such conversations; where 39% of boomers and only 26% of boomers’ parents describe such financial discussions. However, 71% of boomers have discussed their parents’ current financial situation, compared to 54% of adult children of boomers.

More than half (54%) of adult children of boomers say that their parents had conveyed to them the idea that “money is something that should be discussed openly.’ The problem, according to Ameriprise: each older generation had expressed that idea less and less often. Some 48% of the boomers grew up in a household that believed that money should be talked about openly, and even fewer, 44%, of the parents of boomers had that attitude in their home. And, as 61% of the parents of boomers, 56% of boomers, and 59% of the adult children of boomers agreeing that they do not wish there had been more talk about money while growing up, there might not be a significant change in this disconnect in the future.

The study also found there are some varying differences about financial planning across generations as well:

• 81% of boomers have discussed with their parents whether the parents have made a will, compared to 57% of the adult children of boomers who report having that discussion with their parents.
• 72% of boomers have discussed with their parents the parents’ wishes for their home or belongings, compared to 55% of the adult children of boomers.
• 71% of boomers have discussed with their own parents how they would like things handled if they had a catastrophic illness, compared to 50% of adult children of boomers.
• 71% of boomers have discussed with their parents the parents’ wishes for their financial accounts, while 40% adult children of boomers have done so.
• 66% of boomers have discussed their own parents’ medical expenses, compared to 41% of adult children of boomers.

Working with GfK Roper Public Affairs, Ameriprise Financial launched the national study in April and May 2007. Telephone interviews were conducted among 1,001 affluent baby boomers (those with $100,000 or more in investable assets); 300 parents of baby boomers; and 301 children of baby boomers at least 18 years old. Copies of the study report are available at http://www.ameriprise.com/presscenter.