Talk to Your Kids about Your Money

Many boomers feel “sandwiched” between the financial needs of aging parents and those of their own children. Don’t want to be a burden on your kids? Primerica (PRI), a company with more than 30 years of financial expertise, presents three steps toward holding on to more of your hard earned cash as you prepare for the future.

Step 1: Start a Dialogue. Are your children in the dark about your finances? Three out of four boomers admit they haven’t adequately talked with adult children about this topic. Not a smart move. What happens if you become ill or incapacitated?

Think about what you wish your parents had done, then take action. For instance, organize your records, make sure you have an updated living will, power of attorney for health care and power of attorney for finances.

Your Primerica representative can help: Ask about the Primerica Legal Protection Program, which offers document preparation for as little as $20 per document for covered members.¹

Step 2: Consider Long Term Care. If you don’t plan for your future medical expenses now, you’re increasing the chances that your kids will have to pick up the tab. About 70% of seniors eventually need the kind of help that long term care insurance covers,² and the average annual cost of a private nursing home room is nearly $80,000.³

You can pick up the best deals (premiums typically under $2,000 a year) if you buy long term care insurance when you’re still healthy and in your mid fifties.⁴ See your Primerica representative for help with your long term care insurance needs.

Step 3: Cut Off Adult Children. Six in 10 boomers report giving financial help (outside of college tuition) to a child or grandchild in the past five years. Of those, $59,000 was the average amount of aid.⁵ If this sounds like you, ask yourself: Do I really have the resources? Am I saving enough for retirement? Try to share more financial wisdom and less cash with your adult offspring. The more you save for your own future means less possibility that you’ll need their help later on.

To learn more about how Primerica can help you reach your financial goals, contact your local Primerica representative for a FREE Financial Needs Analysis (FNA).

1. Please review the plan for information regarding benefits limitations and exclusions.
2. Money, April 2010
3. Kiplinger’s, March 2010
4. Money, January/February 2010
5. Ibid