Today each U.S. household, regardless of culture, number of children, geographic location or how they were affected by the economic crisis is continually forced to make numerous financial decisions.

These choices range from monthly bill payment, to financing education, to saving for retirement. HNW households today involve both spouses in the decision making process. Generational differences clearly exist in decision making trends. Those over age 65 are the most likely to have the husband making decisions whereas younger households involve both spouses in the decision making process

 Unlike past generations, over half of HNW households have both spouses working full-time. Only 21% of wealthy households have one member working full-time and the other working primarily as the homemaker. Almost two-thirds of the HNW pool their finances as a household rather than having a “mine and yours” type of arrangement. Nearly three-quarters of the wealthy claim that financial decisions cause little or no stress on their current marriage, and as wealth increases, financial stress is reduced. Age is also a determining factor in financial stress with younger people showing more stress than older people. Almost 75% stated that financial decisions caused little or no stress on their marriage. Two-thirds of the HNW believe they make decisions differently than their parents. Those under 45 years of age are much more likely to make financial decisions jointly than those 66 and older.

Advisors and financial firms must ensure that their services are properly including both spouses in their investment decisions. Nearly two-thirds of the HNW pool their finances as a household rather than having a “mine and yours” type of arrangement.  The pooling of assets is particularly interesting in light of the multiple workers in most wealthy households.  This situation is no doubt a driving force for the 24% who pool most of their assets as a family, but still maintain some financial independence by having accounts of their own.

Eighty percent of HNW households feel both spouses are in agreement regarding their financial goals and how to reach these goals.  This is primarily because 68% of these households regularly review and discuss their finances. A similar percentage (67%) feel their attitudes about risk are very similar. Despite the discussion of risk tolerance issues, just over half indicate they must compromise with each other regarding their finances. Knowing that almost 4 of 5 HNW households feel comfortable discussing their finances with advisors and 80% of households feel they are in agreement regarding financial goals is important for financial organization. Advisors must understand that they can speak with either spouse or both without having problems with discomfort or disagreements within the household. In fact, it is clearly important to communicate with both spouses in the discussion process.

Households where both spouses work full-time are less comfortable with how they handle their finances than those where only one spouse works outside the home. Younger households are also less at ease with how they handle their finances. On the other hand, as age increases, comfort levels with how they handle their finances also increases. Why the differences? Perhaps older households have simply gained more experience in managing their finances over the years. In addition, older households generally don’t face the pressures of financing education and retirement because they have crossed those hurdles. As far as why working households are less comfortable, it may be due to time constraints or managing opinions of two confident working individuals. Advisors must be aware of these feelings as they advise these households.

In today’s HNW households, both spouses want to be involved in the financial planning process. Financial service companies should respect generational differences but make an effort to involve both spouses in the planning process and work to ensure both in the household are comfortable asking questions to advisors.

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