Common Causes of Family Conflict & What to Do About Them.
Video No 23. Ages & Stages – Conflicting Financial Needs.
- Major cause of conflict – generated by different needs during different ages & stages, compounded by life’s usual complexities.
- When young – home & mortgage / family / school fees / collecting “toys” + prospect of many more years in the business.
- Willingness to invest in risk – less to lose and more to gain.
- When old – fewer operating expenses, but long period of not working and not earning is now an immediate concern.
- Less return on investment in business and greater need for personal financial security – more focus on self, and less on current & future business.
- Fear that family members (usually not those working in the family business) will be left having to support aging and ailing parents.
- Solution: individual & collective financial plans that address everybody’s (especially parents’ ) needs as well as possible, & reassure the whole family that things are under control.