People in California know how important it is to develop and adhere to smart financial habits, especially in a time of economic turmoil. But spending habits, and even the way people think about money in general, is also influenced by a number of societal factors that make life unique for people raised in a particular time period. As a result, people who want to pass down money to heirs and loved ones in a later generation need to think about their differences and how to fully maximize their money for the generations to come.
A recent financial editorial discussed some of these inter-generational spending issues. It found that many millenials, those who grew up during the financial crisis and in a culture accustomed to sharing via technological advances, say they are more likely to be conservative with their money and want to pass down their wealth to future generations. But Americans from the previous generation, known as Gen-X, people between ages 30 to 49, are actually less likely to be conservative in their spending habits.
So baby boomers, those over 50, have some interesting decisions to make regarding their estate plan. As they approach retirement, many baby boomers are wondering if they can have the peace of mind that the next generation will value the importance of fiscal responsibility as much as they do themselves. Baby boomers in this situation could benefit from talking with an estate planning attorney about these issues and how to maximize the inheritance they want to leave the next generation through a trust for a specific purpose.
Of course, these are broad generational trends, and may not directly influence any persons' specific situation or spending beliefs. But each family's financial situation and personal characteristics are unique, which is why people may require the assistance of an experienced attorney to give their estate plan the individual attention that will fully unlock the financial potential of future generations.
Source: MainStreet "Inheritance Headaches: Gen X and Y to Squabble," Juliette Fairley, Dec. 9, 2013