Strategies for building stronger connections across age groups
Truist Wealth Center for Family Legacy
Our experience tells us communication is the most essential ingredient for sustaining wealth across generations. But cross-generational communication can be particularly challenging, especially within families of wealth. Each generation’s habits, beliefs, and ideals were influenced by very different experiences, traditions, and societal norms. So how do we bridge the divide?
The Truist Wealth Center for Family Legacy gathered more than 80 women for a women’s retreat—a weekend-long learning event for clients ranging in age from 21 to 91. During one general session, participants were grouped by generation: Traditionalists (the Silent Generation), Baby Boomers, Gen Xers, Millennials, and Gen Zers. Through peer group dialogue, women shared their experiences communicating across generations, identified barriers, created solutions, and then did the same in cross-generational groups. Throughout robust discussions, several insights emerged and led to key findings and strategies that can help families in bridging the cross-generational communication gap.
An overarching theme regarding cross-generational communication surfaced when examining the importance of family communication: The older generations need to understand the ways of the younger generations and respect the new world they live in. The younger generations also need to understand and respect the amount of experience the older generations bring to bear. Some of the hot buttons discovered during the roundtable session were generational generalizing (i.e., “you all do this, you all do that”), unsolicited parenting advice, needs for immediate gratification, the lack of willingness of older generations to adapt and change with the times, the impact of technology, ultra-busy schedules, and the older generations’ wishes to hold on to tradition as they know it.
Generational differences in financial perspectives are common and can pose challenges for families, especially when it comes to managing and transferring wealth. Let’s examine how each generation approaches and views money.
Shaped by the Great Depression and WWII, the Silent Generation (born 1925-1945) is known for its frugality and emphasis on saving. They tend to prefer cash transactions and are cautious about debt, focusing on financial security and conservative money management. Baby boomers (born 1946-1964) tend to be more materialistic and status oriented. Having embraced credit spending, they place significant value on work achievements and career prestige.
Witnessing the shift from cash to digital transactions, Gen X (born 1965-1980) spends more on consumer goods, education, and housing. Compared with older generations, they are more comfortable with credit. Millennials (born 1981-1996) prioritize experiences over material possessions because of rising costs and high debt and are willing to invest in quality and convenience, reflecting their unique financial challenges. And the highly tech-savvy Gen Z (born 1997-2012) frequently monitors their accounts and tracks spending. They are cautious about incurring debt and demonstrate a strong sense of financial responsibility early on.
Geographic dispersion, busy schedules, judgmental attitudes, gossip, and hurt feelings were identified as factors that seriously impact communication.
There was considerable mention of the older generations being intrusive into the lives of the younger generations. Gender differences, differing values between couples, different personality types and styles among siblings, and role expectations of parents were also cited as communication challenges. The impact of loss and the grieving that follows was also raised as a barrier to communication.
When asked how family history impacts communication, participants noted that past disagreements limit conversation because prior experiences were so exhausting no one wants to go there again. Historic episodes lead to typecasting. Sometimes the youngest member of the family never feels respected despite having grown and developed in many ways. But, because of family history, the family fails to recognize the growth and change.
Several participants discussed the impact of family secrets on communication. Sexuality, blended families, mourning losses, addiction, and mental illness all surfaced as topics the older generations often don’t discuss and the younger generations wish to talk about.
Because traditionalists and boomers did not grow up with internet-based technologies, they, in many situations, struggle to keep up with the constant changes. AI is playing a pivotal role in bridging communication gaps across generations. By analyzing each age group’s distinct communication patterns and preferences, AI can customize messages and adjust communication styles to better resonate with everyone involved. This personalized approach helps enhance understanding and mitigate potential conflicts arising from generational differences.
For example, AI-powered language models can simplify complex financial concepts for younger audiences or clarify emerging technological ideas for older generations. Additionally, AI can assess communications’ sentiment and emotional tone, identifying potential misunderstandings or conflicts before they escalate.
Most of the participants who discussed cross-generational communication focused on transparency regarding family wealth. Understanding the topic is complicated by many factors. Historically, privacy around money/wealth has been core to the values of the senior generations. For them, discussing money, incomes, or inheritance was not promoted by society or acceptable. Another factor is the controlling matriarch or patriarch who was raised on these values and finds it difficult to adapt to a changing culture.
Many of our clients who participated in this session offered numerous good recommendations, as several of them have engaged in the recommended best practices for sustaining family wealth over generations. These clients are committed to raising healthy, happy, educated, motivated, and productive next generations, who are actively pursuing their own passions and purpose in their lives.
The Center for Family Legacy has many resources available to assist you and your family with communication challenges. The following are some recommendations, which can be accessed through your Truist Wealth advisor in partnership with the Center for Family Legacy. In many cases, we have simply embellished on recommendations captured above:
Talk to a Truist Wealth advisor or reach out to Truist Wealth’s Center for Family Legacy for more information.
Key insights into effective wealth transfer across generations
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