Why you should consider making financial planning a family affair

If you're among the many Americans raising children while also caring for your parents, you know how difficult it can be to make decisions that are best for everyone at the same time. Managing your own well-being is hard enough — managing it for multiple generations can feel downright impossible. And when finances come into play, it can all seem overwhelming.

Our research shows that financial wellness is a key driver of overall well-being. But often when we think about financial health it’s just our own individual goals that come to mind. Taking a broader view that includes your entire family’s financial health can help make a meaningful difference in your future. And, financial planning isn’t just about numbers; it’s about coming together as a family to make thoughtful, collaborative decisions that help to support each generation’s goals.

We’re all in this together: Making financial decisions as a family

Creating, managing, and transferring wealth in a way that benefits multiple generations — that means you, your partner, your parents, and your kids — goes beyond personal financial management. A multigenerational approach can include:

• Investment strategies for children/college planning. 

• Estate planning for aging parents. 

• Tax-efficient wealth transfer. 

• Protection products like life insurance and disability insurance. 

• Medical costs and possible in-home or center-based assistance. 

• Retirement planning — not just for your parents, but for you, too. 

It’s natural to lean on friends and family, especially your parents, when making financial decisions. But that might not always lead to the best outcomes for your family. In fact, only 14% of people who rely on their parents for financial help report high financial wellness. Compare that to 53% of those who work with a financial professional, a nearly four times increase.¹  A lack of financial confidence spans across generations and genders, so when you’re planning your family’s financial future, calling in a financial professional can be more beneficial than you may realize.

How to get started creating a multigenerational, family-centered financial plan

So how do you get started making your family’s plan? A financial professional can help bring a holistic view to your planning, beginning with helping you manage your budget, investments, retirement planning, and risk management. But their role doesn’t stop there. They can help you consider the following questions to help you integrate your whole family into the planning: Do you have enough life insurance to protect your children? Will you be able to pay for health care costs for your aging parents along with day care or college tuition? And amongst all these payments, where does your retirement fund come in?

They can help clients establish custodial accounts, 529 college savings plans, or even Roth IRAs for working teenagers. They can also educate younger generations on financial literacy, helping them build smart habits early.

Estate planning financial professionals can assist with:

• Will preparation 

• End-of-life planning 

• Wealth transfer strategies 

This helps ensure that assets are passed on smoothly and in alignment with the family’s values and wishes.

There are so many benefits to working with one financial professional across generations. A unified family approach means continuity; because they understand the full family picture, transitions can be much smoother and there’s fewer missed opportunities. Trust is an important factor as well, as building a long-term relationship generally results in confidence and transparency. And finally, don’t underestimate the power of education. Don’t you wish you’d learned about personal finance when you were at school? Well, financial professionals can help to fill that void with education — mentoring younger family members and preparing them to manage inherited wealth responsibly. It also makes transparency far more likely, because you’ll have regular family meetings, clear financial reporting, and honest discussions about challenges and opportunities that will keep everyone aligned and engaged.²

A legacy worth planning for

Whether you're just starting to build wealth or preparing to pass it on, a family-focused financial professional can be your most valuable partner. Planning for the future with your whole family is about ensuring that your financial legacy supports your loved ones and offers them security and opportunity — not just today, but for decades to come.