Money can be difficult to talk about, and many financial issues are complicated to tackle. That's why Chase and Vox Creative created the Five Essentials series, found here and distributed through the Vox Media Network, to explore financial fitness issues that are relevant to you. We're breaking down what's really essential to know about a topic.
Few people like to talk about money, and it's even harder because so many look at money in different ways, with varying needs and expectations. But they know it's critical: Ninety-four percent of millennials say it's very important to have the "money talk" with their kids, while 74 percent say their parents had the money talk with them, according to Chase's new Generational Money Talks study. But it's not always easy: They'd rather talk about drugs and alcohol with their kids than talk about money.
"Money brings up so many strong emotions that people prefer to avoid discussing it, because it can lead to arguments," says Josh Palmer, a certified financial planner and head of the wealth advisory team for Chase. Still, says Peter Wall, chief market strategist for Chase Private Client: "The fact that people are having those conversations — which for so many generations were taboo — makes for better investors, makes for people that are more financially prepared for the things that lie ahead, and ultimately will help them achieve their financial goals."
The result is a millennial generation with greater financial confidence, budget-mindedness [link out to charts piece], and an earlier retirement ambition [link out to timeline] than generations before them.
So how do you begin the conversation? Here are the five essential rules for talking about money with your kids, parents and friends:
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