5 practical financial topics to discuss over the dinner table this Christmas

27/11/2024

While Christmas might not seem like the right time to discuss finances, it can actually be incredibly beneficial. Here are 5 topics worth raising this year

Bob Hoskins once famously reminded us in a BT advert that “it’s good to talk”. Though, in everyday life, telling yourself that you need to discuss certain topics – particularly money – can seem like “the worst-kept promise in the world”.

Even while you may wish to talk about your finances with loved ones, something might always seem to get in the way, and “I’ll find a better time” or “I’ll do it later” becomes a recurring mantra.

Interestingly, a study reported by FE News found that 47% of respondents don’t talk to anyone about their finances, despite 18% wishing they could. Money, it seems, remains a taboo topic in the UK.

While Christmas might not immediately come to mind as the ideal time to discuss finances, it actually provides quite a unique opportunity to do so.

Everyone’s together, the atmosphere is more relaxed, and conversation tends to flow more naturally. In fact, many of our clients often come back to us in January saying, “This came up over Christmas – can we have a chat?”

So, it might be worth channelling your inner Bob Hoskins over the festive period and remembering that “it’s good to talk”. Continue reading to discover five financial topics worth raising when you and your loved ones gather around the table for Christmas dinner.

1. Talk about the importance of setting life goals with children and grandchildren

Christmas could be the perfect chance to impart some valuable financial lessons to younger loved ones without making it feel like a complex lecture.

Indeed, you don’t need to dive into complex topics, such as diversification or pension tax relief. Instead, focus on more relatable subjects, namely setting life goals and saving for them.

These simple conversations about budgeting and making thoughtful financial decisions could empower your children and grandchildren to build healthy money habits early in life.

Even if they’re older, this could be the perfect time to ensure they know how to manage their wealth, especially as they approach significant life milestones such as buying a home or getting married.

Make sure to encourage them to dream big while emphasising the importance of breaking their goals down into achievable steps, too.

For instance, you could explain how consistent saving, even in small amounts, might help them work towards buying their first car, funding university, or even starting their own business. Ultimately, these conversations could help them to develop practical financial skills.

2. Check how your parents or grandparents are managing their finances

If your parents or grandparents are visiting over Christmas, it’s also worth checking in with them to see how they’re managing their finances, especially as they may find this more challenging as they get older.

You could start by asking them how they’re handling everyday expenses, such as bills and subscriptions. Then, if they’re facing difficulties, you can explore whether they need your assistance, or even the guidance of a professional.

It might also be worth discussing more complex issues, such as their plans for using assets to fund potential later-life care costs, or ensuring they’ve given estate planning some thought, namely registering a Lasting Power of Attorney (LPA) or updating their will.

These conversations aren’t just about financial support, but also about safeguarding their wellbeing. For example, discussing fraud prevention could help protect them from scams, which tend to disproportionately affect older people.

3. Touch on estate planning

While you may think that talking about estate planning during Christmas doesn’t sound very festive, it remains incredibly important.

Indeed, addressing topics such as wills, inheritances, and plans for the future, could help avoid potential conflicts later down the line.

For instance, if your will includes decisions that might surprise or upset someone – such as one person receiving less than others – it’s better to discuss this openly. This is especially the case if you have a blended family, where expectations regarding inheritances could be more complex.

What’s more, assets could sometimes pass to someone you didn’t wish for if your estate plan isn’t clear. So, discussing any arrangements with your loved ones could help ensure a smoother transfer of wealth and reduce the likelihood of disputes.

If broaching these topics seems daunting, preparation can make all the difference. Ensure you understand the main points you wish to discuss, and think about how you’ll introduce the topics, perhaps by referencing a news story.

Additionally, keep the conversation constructive, as this could give everyone time to digest the information.

4. Talk about retirement plans with your partner or spouse

Even if you’ve discussed your retirement plans with your partner or spouse in the past, Christmas could be the opportune time to revisit them.

Open communication is essential when you’re planning for such a significant milestone, ensuring both you and your partner are aligned in your goals and expectations.

Discussing what a dream retirement looks like to both of you could even prevent future conflicts and bring some much-needed clarity to your vision. Whether you plan to travel or simply spend more time with loved ones, these conversations could set the foundation for a fulfilling retirement.

For example, if one of you has a larger pension pot, this might mean that person can retire earlier than they initially thought. Even so, this would be a decision that would affect both of you, so it’s important to talk it through in detail.

Aligning these financial priorities now could help you achieve the lifestyle you both desire in the years ahead.

5. Make sure to discuss the importance of working with a planner

As conversation naturally flows over the Christmas dinner table, it might be prudent to ask your friends and family whether they’re working with a financial planner.

If they aren’t, this could be a practical time to share how a planner could help bring clarity and peace of mind to managing their wealth.

A financial planner can assist with everything from preparing for retirement, saving for a child’s education, and even covering care costs for ageing parents.

As you’ll know, a planner can also tailor solutions to your friends and family’s unique circumstances, ensuring any strategies employed align with their personal goals.

If you’re already working with Douglas White Financial Planning, you may want to consider introducing your loved ones to us, as they may benefit from our expert guidance.

Get in touch

We always remember that “it’s good to talk” when it comes to your finances.

If you or your loved ones would like some of this professional support, email info@douglaswhiteltd.com or call 0151 345 6828 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.

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

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.