3 beneficial reasons to make financial planning a family affair

A client recently asked us if they could invite their grown-up daughter to their next financial planning meeting.

Of course, we welcomed this with open arms, as involving your adult children – or indeed any of your family members – in financial discussions can be incredibly beneficial for both you and them.

With that in mind, continue reading to discover three practical reasons why it’s worth making financial planning a family affair.

1. You could boost your children’s financial wellbeing 

It seems as though a lack of financial literacy in young adults is a common occurrence in the UK, as Santander reveals that only 26% of people aged between 18 and 21 have received any financial education at school.

Involving your adult children in financial discussions could allow you to pass on valuable knowledge and experience you’ve gained over the years.

Indeed, you could share insight on topics you’ve come to understand over the years, such as:

• Why it’s vital to pay into a pension early
• The importance of an emergency fund
• The benefits of financial protection.

Imparting these lessons early might significantly improve your children’s financial wellbeing.

What’s more, by encouraging open conversations about money, you might help your children feel more comfortable asking for advice or sharing their concerns.

Virgin Money UK reveals that only 56% of Brits feel comfortable talking about their money with friends. So, this makes this transparency especially vital, as it could help your family make better decisions and improve their overall financial resilience.

You might also be able to break the taboo surrounding wealth in the UK by normalising these conversations, potentially leading to better financial habits and reduced stress in the long run.

On top of this, discussing money matters with your children could ultimately help them reach their long-term goals.

Your children will likely face some of the same financial challenges you did as a young adult, namely purchasing their own home, paying for higher education, or saving for retirement.

Read more: 4 important financial lessons to teach your children or grandchildren before they go to university

Sharing your knowledge could give your children the confidence to successfully navigate financial issues.

2. You may be able to prevent inheritance disputes later down the line

While the idea of discussing matters such as your passing with children might seem challenging, it’s important nonetheless.

In fact, if you don’t clearly set out your wishes regarding your estate and discuss this with your loved ones, you may inadvertently end up causing an inheritance dispute if you pass away unexpectedly.

These conflicts are far more common than you might initially think. In fact, the Guardian reports that up to 10,000 people in England and Wales dispute wills each year.

These disputes can be driven by increases in second marriages leading to stepchildren being disinherited, and a rise in dementia resulting in more claims that wills weren’t properly drawn up.

You could ensure that everyone is aware of your intentions by openly discussing any decisions regarding the division of your estate with them.

Doing so could allow your beneficiaries to ask questions, voice any concerns, and understand the reasoning behind your choices, potentially reducing the chances of disputes.

Read more: 5 simple tips to help you feel more comfortable talking about money and estate planning with your family

You might even want to involve your financial planner in these conversations, especially if you find them challenging to broach. Indeed, they could act as a mediator and help maintain the flow of conversation, all while offering professional guidance.

Additionally, your children might also need to plan for an Inheritance Tax (IHT) bill when they inherit your estate. By making them aware of a potential change early, they might be better prepared to deal with this tax burden.

You could also explore several strategies for managing IHT together, such as making the most of exemptions, gifting, or using trusts.

3. You could help your children care for you when you’re much older

As you get older and your health starts to deteriorate, you and your children might switch roles. This may mean that they start to help you manage your affairs. As such, it’s vital to discuss arrangements ahead of time.

For example, you may want to consider putting a Lasting Power of Attorney (LPA) in place. An LPA allows you to nominate someone you trust to manage your affairs should you lose mental capacity, offering you some much-needed reassurance that you’ll be looked after.

There are two main types of LPA on offer:

• Health and welfare – your attorney can make decisions on your behalf regarding your health
• Property and financial affairs – your attorney can access your bank accounts and pensions, pay your bills, or make protection claims in your name.

To prepare your children for any potential scenarios in the future, you may want to explain how an LPA works. This is especially vital if one of your children is your nominated attorney, as they would likely need to fully understand their responsibilities if you do lose capacity.

Read more: 3 important reasons why you should organise a Lasting Power of Attorney now

Moreover, discussing plans for later-life care, including how you’re going to fund it and your specific wishes, could ensure that your children are informed and can make decisions that align with your desires.

The costs of later-life care can be significant. Carehome.co.uk reveals that the average weekly cost of care for self-funders in 2025 is:

• £1,160 for residential care, translating to £60,320 a year
• £1,410 for nursing care, equivalent to £73,320 a year.

These costs could be considerable, and the burden might fall on your children. So, it’s worth communicating with them about how you plan to cover the costs, whether with savings earmarked for care or by downsizing your home.

By doing so, you could prevent any unnecessary financial stress for your loved ones later down the line.

Get in touch

Whether you’d like some advice on ways to help your children financially, or would like to involve them in future conversations, we’d be more than happy to help.

Email us at info@harperlees.co.uk or call 01277 350560 to find out more.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

The Financial Conduct Authority does not regulate estate planning, Lasting Powers of Attorney, or will writing.