As the baby boomer generation enjoys retirement and Generation X approaches that stage, there's a crucial aspect of financial planning often overlooked: engaging adult children in your financial discussions. Including them in these conversations ensures they understand your wishes and values, making them better equipped to manage future responsibilities like healthcare or estate management.

Talking about finances with the next generation varies greatly among families. Some are transparent, others only discuss money when necessary, and some avoid it entirely. While it may feel uncomfortable or premature to have these conversations, it's vital. Addressing these topics now isn't about mortality; it's about ensuring your legacy and preparing your family for future challenges.

Parents often hesitate to discuss their financial plans with their children, wanting to protect them. However, your adult children likely know more about finances than you think. It's important they understand your plans while you're able to communicate them clearly. Clarity today can provide comfort during emotional times ahead.

Transparency is paramount. In emergencies, children often need to find crucial documents and manage various affairs, sometimes while grieving. Being aware of where to locate important documents reduces stress. Key documents include Social Security cards, birth certificates, financial records, property deeds, insurance policies, and medical history. Securing these and providing instructions, including access details for digital accounts, is essential.

Initiating these discussions might be daunting. Start early to avoid getting caught off guard. If incapacitated, your children might need to make crucial decisions. Breaking down discussions into manageable topics can help: talk about where you see yourself living in old age, your healthcare wishes, and provide an overview of your finances and estate planning.

Discuss what traditions or causes you hope your children will continue and the assets they might inherit. Clearly explaining your reasoning can prevent disagreements or confusion later. Regularly reviewing your estate plan to ensure it reflects your current wishes is also crucial.

Navigating these conversations can raise emotional concerns, especially with multiple children. Anticipate potential tensions, but also recognize the opportunity for positive and meaningful dialogue. Encourage your children to ask their questions and share your family's history and values with them. Sharing your experiences, including proud moments and regrets, helps preserve your legacy and imparts valuable wisdom for future generations.

Sometimes your children might initiate these talks, which should be seen as an opportunity. Be prepared and open to these conversations.

For further tips on financial matters, consider related topics such as charitable giving, end-of-life planning, dealing with inflation, and protecting against cyberattacks. It's vital to manage your finances thoughtfully, ensuring you and your family are prepared for various scenarios.

This material is for general informational purposes and not personalized advice. For specific guidance, consulting a financial advisor is recommended. Information here is from financial advisors Bruce Helmer and Peg Webb, hosts of "Your Money" on WCCO 830 AM.