Sadie Russel from Legal & General Home Finance presented recently at the Later Life Lending Summit about approaching awkward, yet essential conversations around money. Read more below.
Talking about money can sometimes be really awkward. Our sense of self-worth is often closely linked to our perception of our finances, making these conversations feel embarrassing, uncomfortable, and even judgmental. In our society, discussing money positively can be seen as crass or impolite, leading many to avoid it altogether. This avoidance is especially true with those we care about most – our families.
Throughout our lives, your clients will encounter significant milestones that necessitate financial discussions with family: embarking on a university journey, getting married, buying a first home, and planning for retirement. Financial advisers often play a crucial role in these conversations, guiding clients through these pivotal moments.
To support these essential conversations, we’ve adopted a three-pronged approach:
- Empowering clients with information: Clients need better information to understand the support available to them and to have their vulnerabilities recognised. As a business, we acknowledge that during some of the loneliest and most challenging times in their lives, we play a vital role in shaping their future decisions.
- Advisers as mediators: Advisers are often at the forefront, informally mediating tough conversations. Their role is critical in helping clients navigate these discussions with empathy and expertise.
- Collaborative efforts: Collaborators, such as mortgage brokers and solicitors, also play a significant role. Whether it’s financing two homes or understanding the benefits of early financial advice in divorce proceedings, collaboration is key.
Advisers increasingly need to take a holistic approach to advice, recognising the broader context of their client’s lives and the importance of comprehensive financial planning. In my presentation, I’ll signpost some of those key resources so that you can really make the best of those tricky, awkward (but essential) family money conversations
