In some households, it’s considered impolite to talk about money. But the consequences of imprudent financial management can be very serious. Poor money skills can result in crippling debt and personal bankruptcy.

But are you prepared to discuss your own finances with your kids? “Too personal,” you think, or “That’s none of their business!”

Perhaps. Your children may not need to know that you once bounced seven checks in a single day, or that you were denied a mortgage four times before finally getting approved. However, there is some financial information you should share with older kids, and that’s the basics of your will.

Whether you reveal your annual income or your monthly rent or mortgage payment is up to you. But your youngsters need to be aware of how you’ve planned to provide for your family if something happens to you and your spouse.

You don’t want to frighten your children when you raise this subject. You just want them to understand that you have taken steps to make sure they will always be cared for and safe. And they might be less naive than you think. Kids are bombarded daily with news reports about wars and disasters, and missing parents are a mainstay of children’s literature. Think of all those evil stepmothers in fairy tales like “Cinderella” and the orphan heroes of other stories like “Harry Potter.”

Suffice it to say, a will is probably the single most important document a parent can create for a child. A will outlines what happens to your financial assets, designates an executor to see that your instructions are carried out and describes your plans for your children’s care until they are old enough to be on their own.

Despite the obvious importance of having a will, two out of three Americans die without one. This has always shocked me. Failing to have a will can leave your loved ones and assets in jeopardy.

Many parents draw up wills when a child is born. If you did it with your first, remember to revise it with each additional child. And if you haven’t done it, do it today.

A lawyer can draw up a basic will for about $500, or you can write your own with the help of software, books and Web sites. Wills must be notarized to be considered legal documents. At the very least, you can write a will by hand, outlining your plans for child custody and asset allocation. Sign and date it, keep it in a safe place and give copies to someone you trust outside your household, like a good friend or clergy-person.

Some handwritten wills can stand up in court even if they are contested. The safest will, of course, is one written by an attorney who specializes in that area of law and knows the legal requirements of your state.

Keep in mind that in the vast majority of families, the surviving relatives or guardians want to abide by the parents’ wishes, as long as those wishes are clearly spelled out. So, if you don’t have a will at the moment, write something down on paper immediately. Or discuss it with someone close so that your instructions are known until you get a formal will in hand.

Once you’ve got your will written, review it every five years or so with your lawyer. Things change. You may buy a new home, have more babies and accumulate new assets. Letting your kids in on the conversation is an important way to include them in your financial life.



Financial expert Neale S. Godfrey has written 15 books, including the recently updated “Money Doesn’t Grow On Trees,” and companion text, “Money Still Doesn’t Grow On Trees: A Parent’s Guide To Raising Financially Responsible Teens and Young Adults.” Her special program, “Your Money, Your Children, Your Life,” has aired on public television stations.