I’m Gen X – no money worries!

Issue

Statistics show us that the majority of middle class NZ’ers start having children at around age 30.  This is much later than my generation – the baby boomers.  The introduction and acceptance of effective contraception in the mid 60s in our society has gradually extended the timeframe in which couples plan for children.  My 3 children were all at school when I turned 30.

When babies arrive the world changes for young couples – for at least 20 years and possibly 30, depending on the number of children or the age gap between.  This means that between age 30 and 60 some critical financial and behavioural eventualities will occur.  We also know from statistics that the likelihood of certain events will affect some of these ‘happy families’, detrimentally.

Rationale

The probabilities:            a home and mortgage (debt – long term)

                                                a fluctuating income (one income at times)

                                                increased living expenses (children – home improvements)

                                                the cost of retirement planning (cash flow – long term)

                                                financial strain (relationship)

                                                the memory of ‘single’ days (temptation)

The possibilities:             separation and divorce (30 – 50%)

                                                traumatic health events (30 – 50%)

                                                self or family bereavement (10 – 25%)

                                                redundancy or business failure (20+%)

                                                chemical dependency

                                                alternative liaisons / blended families

It’s a bit hard to believe that these events or eventualities could occur when ones eyes twinkle and remain transfixed with the one to whom we gave our vow.  The reality is that sleepless nights, attention demands, career change, money worries – the cost of living, is relentless.  For young mothers time out is not impossible but it does exacerbate relationship issues if the chosen path is employment.  It takes an extremely well planned couple to allow both to maintain a career – with it inevitably, a price to pay.  For some unfortunately, there is no option and the weekends become a family reunion, a revivalist camp.  At which point we are generous of praise for either the day care supervisors or teachers from Monday to Friday or grandparents waiting in the wings to relieve the pressure points.

This is a tough time for couples and families.  There are advantages that 30 year olds have over 20 year olds.  Or Gen X’s over Gen Y’s.  Not all but most, have matured through life experience.  In critical areas such as relationships and money.  They have probably settled on a career direction for at least one partner – it might not be manifest but whimsy has abated.  But Gen X’s can struggle to trust.  Their greater ‘experience’ has taught them that trustworthiness is easily promised but harder to find.  They will have some close friends but their social media contacts list will not rival the younger generation.  And therein lies one of the major problems for Gen X.  Where do I turn for help.  Their friends are likely to be ‘in the same boat’, their Mums and Dads often products of the Welfare State and biases and beliefs linked to their upbringing and scripting.

New thinking is required and there is no ‘one answer’.  No silver bullet.  No one generation right and another wrong.  Each are experiencing and experimenting through changing times.  No ideology can be constant through such change.

Recommendation

The family is sacrosanct, too important to be ignored however from experience, highly unlikely to be the catalyst for change.  A trusted service is required to give direction and to smooth the road. The role of a trusted adviser service is to ensure that financial affairs are in order, goals and aspirations are in alignment with the products, services and strategies necessary to achieve them and ultimately, there are ‘no surprises’.

Not easy to achieve 30 years of good decision making as a couple in critical areas of financial planning whilst family, career and life take precedence.  Any one of the eight great investment mistakes or ‘life possibilities’ are hovering with patient expectancy – assistance is available, it’s called financial planning.  There is a cost but if you don’t find value – you don’t pay.  Unlike the cost when you make mistakes through life – someone always pays the price.