New research released today reveals over 40 per cent (42%) of Australians are yet to have important and proactive conversations with their loved ones about inheritance, despite 74 per cent saying these conversations are necessary.
Australia is currently in the midst of the biggest intergenerational wealth transfer in history with baby boomers set to hand over $3.5 trillion to the next generation.
However, the research shows that 20 per cent are not even sure how to begin the discussion with their loved ones even though almost half of people (48%) believe that having the conversation about a legacy before a person passes away will cause less conflict amongst beneficiaries.
The research, commissioned by financial educator and communicator Vanessa Stoykov, reveals the compelling need for Australians to be confident and comfortable having conversations with family about inheritance and money.
“The time is now for Australians to become more financially literate and break down unhelpful beliefs about money and talking about it. This is about equipping ourselves with financial skills and independence,” says Ms Stoykov.
“It can be tricky to navigate difficult conversations around money, but everyone needs to have a dialogue with their partners, parents, children and grandchildren. This is not just about whether someone is leaving money, but also the financial legacy that you pass on to your children. Talking openly to them is a legacy and gift in itself,” Ms Stoykov said.
The research also shows many Australians value a partner who is responsible with money. Twenty-five per cent of participants believe their partner being irresponsible with money is the second biggest deal breaker after infidelity (53%). And younger Australians (aged 18-24) rate this higher than any other age group.
The data also shows that for many Australians, money is an important factor in their relationship. Forty-five per cent of people believe the thought of living a lesser lifestyle is the main factor in staying together.
Ms Stoykov says, “Money has the potential to cause major rifts in a relationship and this research shows that it is important to share similar values when it comes to money to avoid conflict.”
In the newly released book ‘The Five Conversations About Money That Will Radically Change Your Life’, Vanessa Stoykov explains that it is no longer taboo to talk about inheritance and that there are important conversations to be had to help Australian’s improve their finances.
The Five Conversations About Money That Will Radically Change Your Life is available at retailers across Australia and online here.
For more information and free resources on achieving financial freedom visit www.vanessastoykov.com.au