Proper financial planning and management by families is crucial in establishing long term financial security for their future generations and providing them with peace of mind that they are well provided for. It is important that family members communicate with each other to determine the best solutions that meet their financial and life goals.
Given the challenges surrounding the topic of long term financial security, Prudential Assurance Malaysia Berhad (PAMB) has recently organised a media briefing where financial planning and family experts shared their insights in a panel discussion on family legacy planning and wealth creation.
Opening the session, Fiona Liao, Chief Brand Officer of PAMB said, “Sometimes we encounter unexpected crises in our lives that can create challenges to our financial situation and well-being. At Prudential, we recognise that financial stability and security, together with healthy relationships, is the foundation of a quality life.”
According to the Prudential Relationship Index 2016, Malaysian couples tend to keep their finances separate with only 39% of married Malaysians having joint bank accounts with their spouses.
The research also showed that most Malaysians allocate separate roles when managing their family finances, with 61% of men saying they control the spending on bigger purchases and 61% of women saying that they are responsible for day-to-day spending.
Wan Nuradiah, Associate Director of Ipsos Loyalty and Public Affairs shared that, based on the research, financial security was an important factor in relationship satisfaction between family members. “The findings showed that 47% of Malaysians argue over money with their spouses. Financial uncertainty and burdens often create stress and tension within families affecting their relationship satisfaction.”
Dino Lim, Senior Director of Product Development and Management at PAMB commented at the briefing, “Helping Malaysians prepare for the unexpected is at the core of what we at Prudential do. As part of our commitment to provide long term protection solutions to our customers, we introduced PRUwealth, an insurance plan which provides Malaysians with high protection to secure the financial future of their loved ones.”
Lim shared that PRUwealth is expandable and flexible enough to suit the varying needs from individual to individual, thereby providing customers with a complete legacy solution.
“With PRUwealth, we strive to help create a solid financial foundation for Malaysian families, providing them with the security and protection that they need for the long term and creating a legacy for their future generations,” he added.
The other panelists at the briefing were Phang Kar Yew, Executive Director and Co-Founder of Harveston Financial Group; and marriage and family therapist, Charis Wong, who is also the founder and director of KIN & KiDS Marriage, Family and Child Therapy Center.
Phang echoed that the happiness of a family comes from security with proper financial management, “Even though money is not the only important factor in our lives, it is undeniable that happiness also stems from a stable relationship and financial status. It is important for families to manage their finances by making the right decisions that can create and protect their wealth while leaving a legacy for the next generation.”
“When partners are able to communicate positively and view each other as a trusted financial partner, they can collaboratively attend to family matters such as family budgeting and financial management, investment and insurance plans, planning for retirement and other financial obligations and commitments,” shared Charis Wong.
“Since financial disagreements are often regarded as the most difficult to resolve compared to other types of marital conflict, couples need to plan ahead and build a financial management system that works for them. This not only preserves the family financial legacy for the future generation but also paves a strong precedent for them to follow,” she concluded.