With the holidays just weeks away now, many are readying their Thanksgiving dinner list, hanging up seasonal decorations—and bracing for uncomfortable family dinner table financial conversations.
However, conversations don’t need to be dreadful this holiday season—rather than arguing about the status of their relationships or whether they really need that second helping of dinner, Gen Zers and Millennials are increasingly seeking conversations about money and finances with their family, finds new research from Northwestern Mutual’s 2023 Planning & Progress study.
“Meaningful wealth discussions between generations are now happening earlier in life and more frequently.”
Aditi Javeri Gokhale, Northwestern Mutual
According to the research, Gen Z and Millennials are among those who believe kids should be between the ages of 15 to 16 when first speaking to family about finances, with Gen Zers noting that they were 15 years old when their parents first spoke to them about money. It’s a stark difference compared to Baby Boomers, who believe parents should hold that conversation until kids turn 18, and who themselves were 22 years old when they first spoke to their family about finances.
“Talking about money with your family used to be taboo in society, but today, young people are changing the conversation,” said Aditi Javeri Gokhale, chief strategy officer, president of retail investments and head of institutional investments at Northwestern Mutual. “Meaningful wealth discussions between generations are now happening earlier in life and more frequently. Beyond financial planning, these conversations are also moments to reconnect with children on values, hopes, expectations and the financial acumen they need to thrive today and long into the future.”
Along with finances, Gen Zers and Millennials say they want to talk to their parents about wills, life insurance, and long-term care earlier than Boomers have in the past. When asked at what age should family begin having conversations about estate-related matters, Gen Zers responded age 47, while Millennials say 45, Gen Xers say 51, and Boomers would wait until age 55.
Options regarding long-term care are increasingly happening at younger ages—with Millennials and Gen Zers prioritizing those conversations earlier (at ages 42 and 40, respectively) compared to Gen Xers and Boomers (at ages 49 and 53).
Most trusted source
The study found that Gen Z isn’t likely to gather their financial knowledge from social media (as other reports have indicated in the past), but instead, they tend to trust their family members and financial advisors for financial guidance.
Twenty-eight percent of Gen Z respondents ranked family members as their most trusted source for financial advice, followed by financial advisors (22%), spouses/partners (12%), business news (11%), financial influencers and social media (6%), and friends (4%).
Alternatively, Millennials, Gen Xers, and Boomers all placed financial advisors as their most trusted source for guidance (25%, 35%, and 35%, respectively), followed by their spouse/partner (20%, 15%, and 16%).
“Gen Z continues to rely on parents for sound counsel as they emerge as young adults, but they also see advisors as financial experts that they can trust for advice,” added Javeri Gokhale. As Americans with teenage and young adult children reconnect with their financial advisors in the year ahead, I expect more Americans to add seats at the table for the next generation so the entire family can prepare for their financial future together.”
SEE ALSO:
- Younger Workers Likelier to Become Caregivers
- Longevity Planning Across Generations
- Over 80% of Gen Zers and Millennials Seek Financial Advice
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.
