Preparing for Family Financial Responsibilities Across the
Generations
The MetLife Mature Market Institute has released a series of planning
tips, Preparing
for Family Financial Responsibilities Across the Generations, to
help Americans navigate family financial relationships. A follow-up to
the organization’s recent study, Multi-Generational
Views on Family Financial Obligations, the document, available
for download online, helps people determine how their sense of
responsibility or desire to help children or parents translates into
action. Can you or should you help your children or grandchildren
financially? When do you stop supporting an adult child? Do your parents
need financial assistance?
“We’ve prepared these tips to help people prioritize their family
responsibilities and to learn how to meet them,” said Sandra Timmermann,
Ed.D., director of the MetLife Mature Market Institute. “In our study,
we determined that people provide financial assistance to family members
out of a combination of love and need. There is agreement that parents
should support children through their college years, help with tuition
(90%) and step in to provide financial assistance during an emergency –
not of the child’s doing. But, they stop short at paying all college
tuition costs if they’re particularly high. There is also a consensus
against bailing adult children out of debt when the debt is from
overspending.
“How do individuals determine when to help others and when to allow them
to be independent? We found that people must examine their own financial
status and make decisions about how to assist their family members based
on their ability to do so, the real needs of their parents and children
and a look down the road at how each party will be able to deal with
change and unexpected pitfalls,” said Timmermann.
Among the tips listed in the publications are the following:
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Begin with an understanding of where you are in your life.
Knowing your own assets, income, existing debt and obligations for the
future will help you determine if you’re in a position to help others.
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Start with taking care of your own needs first. It is helpful
to pay down debt and secure your retirement income before endeavoring
to provide assistance to family members.
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Reassess as you go along. Changes occur; be sure to continue to
monitor your own financial picture.
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Don’t just give more…give for. If you decide you can give, do
so with a stated goal or objective, especially those that are
practical.
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Make your legacy a family conversation, not a family secret! Open
communication among the generations goes a long way toward avoiding
feelings of suspicion, anxiety and resentment.
Click here to download a copy of Preparing
for Family Financial Responsibilities Across the Generations or
visit www.MatureMarketInstitute.com.
The full study, Multi-Generational
Views on Family Financial Obligations, is also available for
download online.
The MetLife Mature Market Institute®
Celebrating its 15-year anniversary in 2012, the MetLife Mature Market
Institute is Metropolitan Life Insurance Company's (MetLife) center of
expertise in aging, longevity and the generations and is a recognized
thought leader by business, the media, opinion leaders and the public.
The Institute's groundbreaking research, insights, strategic
partnerships and consumer education expand the knowledge and choices for
those in, approaching or working with the mature market.
The Institute supports MetLife's long-standing commitment to identifying
emerging issues and innovative solutions for the challenges of life.
MetLife, Inc. is a leading global provider of insurance, annuities and
employee benefit programs, serving 90 million customers. Through its
subsidiaries and affiliates, MetLife holds leading market positions in
the United States, Japan, Latin America, Asia, Europe and the Middle
East. For more information, please visit: www.MatureMarketInstitute.com.
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