This Thanksgiving, families may be more willing to talk about their finances at the dinner table compared to years before.
According to Fidelity’s latest State of Wealth Mobility study, respondents across income and asset levels agree that families need to mend their comfort levels when discussing finances. More than half (56%) say their parents never discussed money with them, and most (81%) say they would have benefited from receiving financial education at a young age.
Finances have traditionally been a contentious topic, and especially among those with self-made wealth. Fidelity’s study shows that eight in 10 Americans say their wealth is self-made, with only 5% saying they’ve inherited their wealth.
Perception of wealth could also impact how families are speaking about finances. Eighty-nine percent of Americans do not consider themselves wealthy, which could factor in how they’re discussing finances, Fidelity reports.
However, that’s changing in today’s landscape, Fidelity finds. Four-out-of-five respondents believe it’s important to speak with the young people in their lives about finances, and two-thirds are actively engaging in these conversations with family members. Another 70% are hopeful that incoming generations will achieve a higher level of wealth because of these conversations.
“Financial planning is often a deeply personal experience, so it’s no surprise people have historically been uncomfortable talking about it,” said Rich Compson, head of Wealth Solutions at Fidelity Investments. “However, it’s important to start talking about family finances early to ensure the next generation is prepared, especially as life becomes more complicated.”
Still, regardless of income or asset level, most Americans report having at least some concerns about money. According to the research, four-in-10 worry they could lose their wealth just as easily as it took to earn; and Americans are split 50/50 in confidence levels when it comes to building and protecting their wealth, with roughly one quarter not feeling confident at all.
In contrast, those who have a financial plan in place are more confident they have taken the right steps to build their wealth (78% vs. 26%) and protect their wealth (78% vs. 27%) than those without a plan.
Fidelity’s State of Wealth Mobility study surveyed 1,900 adults over the ages of 18 who reside in the U.S.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
