Historically, many people put off the process of estate planning or forget about it until it impacts someone in their family or until they get older. In fact, studies have shown that the majority of the American population doesn’t have an estate plan and feels a lack of confidence around their financial plans, but that could all be about to change.
A new Northwestern Mutual study finds that members of Gen Z want to talk about family finances much earlier than previous generations. The research is part of the Northwestern Mutual Planning and Progress Study. Most people participating in the study said that the right time to talk about family financial situations with kids is when the children reached age 17. However, Baby Boomers and beyond said that their first family conversation about finances didn’t occur until they were 22. Although Gen Z members said it happened years earlier at age 15. In other studies, Gen Z members talk about how they cut back their spending now as a result of concerns over the increasingly high cost of living. These data points show that Gen Z may be more in touch with financial issues and both short-term and long-term planning.
It can be difficult to talk about money, but family members are also considered the most trusted source for financial advice with financial advisors coming in second. In fact, family members and financial advisors score up to 20 percentage points higher in terms of trust when compared with influencers on social media. Having early conversations about financial planning is beneficial for setting people up for a successful future, and it can also help address unique aspects of your own estate planning. Contact an estate planning attorney in Pasadena to learn more.