Nov 22, 2016 3 min read

This week, most families will gather to celebrate Thanksgiving.

Family dynamics have changed from two generations ago. Back then, younger generations often went to work for the same company as their grandparents and parents. Multiple generations often lived in the same area so getting together was easier. Often older generations would provide child care to their grandchildren and younger generations would make repairs and other help to their elders. Health care costs were mostly handled by the company.

Today, families are spread all over the country and usually both spouses are employed outside of the home. Instead of working for one company their entire lives, many people work for multiple companies. Earlier generations knew if they worked the required number of years they would receive a pension. All of the risk and cost was borne by the company. The cost of living was much more basic and it was easier to save.

Today, everything is different. The older generation can use their experience to prepare younger family member for the new world. While talking about financial discipline can be challenging, it is important to make sure that your family understands. Workers today are much more responsible for their own retirement than ever before. Pensions are not a benefit that most people have today. The secret is to pay yourself first. This means that you decided how much your budget will allow you to save, and you put it aside as soon as you receive your paycheck. It is important that you pay all of your bills, but if you pay yourself last, there will never be any money left. This is because many of our purchases are discretionary, meaning things that we want not things we need.

Younger family members must realize that decisions they make today can have a major impact on their lives in the future.

It is important that the younger generation understands the importance of a good credit score. This can affect future credit cost, the availability to purchase on credit and possibly employment opportunities.

With the Christmas season just around the corner, it might be a good opportunity to set parameters for gift purchases. It is important to not incur large credit card debt which can be expensive and hurt future savings. Beware of the cash advance checks that often come in your credit card statements. These usually have interest rates much higher than your normal interest rate.

Also beware of any offers that state no credit check. Interest rates are very high and people with good credit would never buy there. Expenses such as cellphones and cable television can have high monthly fees. If you never seem to have any money left just before payday, it might be helpful to carry a small notebook and write down your purchases. This will help you understand where your money is going.

Celebrate the holiday and enjoy your family. It can provide a valuable learning experience that can provide a lifetime of benefits. Older generations have been around the block a few times and their lifetime experience can help younger family members. Have a great holiday.

Your Financial Future is written by certified financial planner Gary W. Boatman, MBA and CFP, who also wrote the book, “Your Financial Compass: Safe Passage Through The Turbulent Waters of Taxes, Income Planning and Market Volatility.”