Family conversations about financial planning take on a new urgency in an era of climate crisis. From extreme weather events to shifting market landscapes, the financial impact of climate change will impact all families regardless of socio-economic position. Engaging in open discussions about climate-related financial planning can serve as a vital first step toward resilience.

Younger generations are keenly aware of the long-term impacts climate change they inherit from their parents will have on their lives into the future. Don’t shy away from the conversation that is right outside your window. Gathered around the kitchen table or living room and talk about what happens if, how are we protected, what are our options, how do we deal with…

Initiating a conversation about climate-conscious financial planning involves acknowledging what happening outside your window, and opening up about the financial risks it poses. Families can harness this moment as an opportunity for collective action letting each generation bring their best to the conversation. Encourage each member to share their concerns, aspirations, and insights regarding the intersection of finance and climate change.

As discussions evolve families can explore strategies to mitigate the financial impacts of climate change such as investment diversification into environmentally sustainable assets, renewable energy ventures, green bonds, and socially responsible mutual funds.

Investing in residential solar panel installations not only reduces carbon footprints but also slashes long-term energy costs. Similarly, retrofitting homes with energy-efficient appliances and insulation can yield substantial savings while enhancing resilience against extreme weather events.

Recognizing that climate change impacts your home and those of your neighbors and local community, families can leverage community resources to bolster their financial resilience. Participating in local initiatives such as community solar projects or neighborhood resilience workshops fosters a sense of collective action while expanding bonds with like-minded residents. But don’t expect all neighbors and community members to agree or take action.

Encourage family members to stay abreast of climate-related developments through multiple sources and educational forums. Multiple information sources are important because of the reams of climate research published under clever names but financed by polluters with little interest in the truth.

In tandem with proactive measures, families must conduct rigorous risk assessments to anticipate potential climate-related threats to their finances. From flood insurance to wildfire preparedness measures, investing in robust contingency plans can shield assets from unforeseen calamities. Moreover, diversifying income streams and cultivating skills relevant to emerging green industries can enhance financial resilience in an increasingly volatile economic landscape.

While younger generations may, rightfully, blame older generations for causing the problem, harnessing the collective wisdom of multiple generations can help create a sense of shared problem-solving for future generations. Elder family members can offer invaluable insights based on their lived experiences, while younger members bring fresh perspectives and technological savvy to the table.

Where the ‘family home’ represents nearly half or more of a couple’s net worth, and therefore the net worth they will transfer to their children when they die, it behooves a family as a whole to do the research, spend the time, and prepare a plan that will improve your financial resilience to climate change.