Financial Preparedness for Families: What information should everyone in the family know?

Who manages the finances in your family? Do you share the responsibilities in your household, or is one individual mostly in charge? While every family is different, it’s not unusual to have a single person take the lead in managing the money for a family, often covering everything from budgeting to investing to estate planning. There’s nothing wrong with this arrangement, but sharing some financial information with other family members can help a family be prepared in case of unexpected situations, as well as empower family members to become involved in financial decision-making.

In this article, we share our stories on the topic of family financial preparedness and then detail the key pieces of information everyone in your family should know. You can also access our Family Financial Preparedness Checklist here.

Katelyn’s Story: Hearing from women

I recently led a conversation with a group of women about the issues on their minds when it comes to their family’s finances. What are their biggest concerns? What do they feel they’re doing well or wish they understood better?

A few women proudly shared how they manage their household finances. They felt confident about their retirement savings and appreciated the tax advice they were getting from their CPA. One woman mentioned how her husband tracks their monthly expenses in a detailed spreadsheet, which he presents to her at a year-end meeting with an updated balance sheet. Another woman, however, admitted she doesn’t focus on finances at all and prefers it that way—her husband takes care of it, while she handles the household and raises their three young children. She trusts him completely. I respected her honesty but couldn’t help thinking about why I’d challenge that mindset.

Noel’s Story: Getting off on the right financial foot

Working in personal finance, I naturally took on the responsibility of managing my family’s finances. Since my spouse was initially uninterested, I assumed the role without hesitation. While I was comfortable handling everything on my own, we soon realized the importance of involving both partners in financial decisions. A fundamental understanding of finances is essential for making informed choices.

We started with the fundamentals—saving all our passwords in a password manager app to ensure we both have access and visibility into all accounts. I also included quick notes within the app to highlight important details for her.

When setting financial goals, both spouses need to be fully invested. To achieve this, it’s essential to understand the household budget and stay within its constraints. Tracking our finances in a budgeting app allows my spouse to see our monthly income, essential expenses, and the amount we save each month. This also enables us to link all our financial accounts, providing a holistic view of our balance sheet.

Our 2025 goal is to go through this checklist, complete it with all relevant information, and save it both digitally and at home.

Thanh’s Story: Living in the sandwich generation

I manage my household finances and provide my husband with full access and an information organizer, as both my husband and I believe that understanding each other’s responsibilities is crucial. This means that if one of us experiences health issues or other unforeseen challenges, the other can step in. Last year, he collected all the necessary documents and filed our tax return; all I had to do was review it. I must say, he did a fantastic job!

However, my confidence faced a new test when it came to my dad. When he was diagnosed with stage 4 lung cancer, I quickly realized he hadn’t discussed his end-of-life plans. There were no wills, no healthcare directives, and no list of assets. It was a painful period for our family, filled with uncertainty.

Thus, I decided to initiate a heartfelt conversation with my dad. To my relief, he was graciously open to discussing his wishes, and we began to explore the important topics that had been left unspoken for too long. Together, we are in the process of gathering all necessary documents and will use our carefully crafted checklist here.

My father’s situation has taught me a vital lesson: having an estate plan is not just important; it’s essential. I need to equip my family to face the future with strength and clarity, ensuring that my loved ones won’t be left navigating the unknown during heartbreaking time.

Six Key Pieces of Information Everyone in the Family Should Know

While it’s wonderful if one person takes the lead in managing the household finances, it’s important for everyone in the family to have an age-appropriate, basic understanding of key financial aspects, like their monthly cash flow and balance sheet. Financial knowledge is empowering, helping ensure that the family can respond more effectively to unexpected events. When everyone is on the same page, it not only makes it easier to work toward shared goals, but also ensures that, should something happen to the person leading the finances, the rest of the family is prepared to step in and keep things on track.

Here are six key pieces of information that everyone in the family should know. Make sure to check out our complete checklist here!

1. Where are your documents and passwords located?

Knowing where to find things – whether physical documents and assets or digital information – is critical for family members. Family members should know the physical location of any safes or safe deposit boxes and where to find password information to digital files.

2. Who are your professional advisors and personal representatives?

If there is an emergency, the first thing your family will need to know is where to turn for help. Make sure they have contact information for your team of advisors, including your wealth manager, CPA, attorney, insurance agent(s), etc. If you have the opportunity to introduce your spouse and/or family, that can help them feel more familiar and comfortable should they need to reach out.

Additionally, your family should know who you have chosen as your personal representative(s), such as executors, trustees, durable powers of attorney, and contingency guardians for children or pets.

3. Where are your legal documents located?

Your family needs to know how to locate copies of legal documents such as wills, trust documents, powers of attorney, advance medical directives (living wills), and any other important documentation. They should know where the final executed and notarized copies are, but you may want to share additional digital or printed copies in a location that is easier to access.

4. What types of insurance do you have?

Keep a list of your insurance policies and providers for your family, including life insurance; property & casualty insurance; medical, dental, and vision; disability insurance, long-term care insurance, and any other policies you hold. They should know where to find account information as well as where to file claims and who to contact.

You may have other insurance policies such as supplemental medical, hospital care insurance, pet insurance, identity protection, etc. – it may be handy to keep a list with this information also.

5. What is on your balance sheet (assets and debts)?

It’s important to share information about your family’s assets and liabilities. A list of assets should include bank accounts and investment accounts as well as real assets such as property, business(es), and vehicles. Make sure family members know where to find usernames and passwords and physical titles or deeds where applicable. Liabilities should include any mortgages, vehicle loans, other loans, and any credit card debt.

6. What are your income and expenses?

Lastly, outline your income and expenses so that if there is an unforeseen event, family members can continue to manage the household. Income should include all sources, including rental properties, annuities, pensions, Social Security, etc. Expenses should include all monthly household expenses such as the mortgage, utilities, credit card payments, and any other loan payments, as well as details on how to make payments. It may be helpful to note whether expenses are critical or optional as well.

In the end, being knowledgeable about family finances is not about being an expert in every detail, but about empowering your whole family to make informed decisions and be prepared for the unexpected. While trust in a partner or advisor is invaluable, it’s also important to make sure family members have a strong understanding of the key elements that shape your financial life.

By helping your family get engaged and asking questions, and by keeping the necessary information accessible, you ensure that you and your family are ready to navigate any challenge that comes your way—whether planned or unforeseen. Your financial well-being is too important to leave to chance, which is why we’ve created a comprehensive checklist to help guide you. This checklist includes the essential items mentioned here, along with additional details that you and your loved ones can complete together, ensuring that everyone is aligned and prepared for whatever comes next.

*Certified Financial Planner Board of Standards Inc. owns the certification marks CFP^® and Certified Financial Planner^™ in the U.S.