Money. Every generation needs it, earns it, and spends it. But try to have an intergenerational discussion of financial management and it’s quickly evident that the key economic, political and social events of each age group have a strong impact on how they want to earn, spend and invest their money. In spite of these differences, helping your children and grandchildren to manage their finances may be easier than you think — if you can discover common ground.

helping your children and grandchildren to manage their finances may be easier than you think — if you can discover common ground.

Traditionalists, the generation born between 1927 and 1945, were shaped by coming of age in the Great Depression and World War II. They became successful by working for and remaining loyal to one company for their entire career. They are a generation of savers that expected to wait for rewards. “Waste not, want not” is their guiding principle.

Meanwhile, Millennials, the generation born between 1977 and 1998, grew up during the War on Terror, in a period marked by market booms and the Great Recession. Today’s young people were raised as consumers with an emphasis on instant gratification — paid for by credit. The overnight wealth that start-ups have created, combined with reality television shows where “real people” become wealthy celebrities, also created a false sense of what it takes to become successful.

Adam Lewis, an associate financial advisor at Cornerstone Advisors, and a Millennial himself, has witnessed this attitude among his professional peers. “Books like the ‘4-Hour Workweek’ by Timothy Ferris have become centerpieces of discussions for young business people — the premise being that you can achieve significant wealth without having to work for it.”

The Great Recession was a game changer, however, and has forced a reset of this outlook for working-age Millennials. Does this mean a return to the era of an entire career with one company? Not according to Mark Wilkerson, a young financial analyst at Cornerstone. “Our generation has more options in how we earn money and live because of the freedoms that the Traditionalists provided us,” said Wilkerson. “Due to their efforts, we grew up in the world’s largest and most dynamic economy, without a major war or another depression, during an amazing period of technological innovation. These factors and many others combined to give our generation a plethora of career and life opportunities.”

We’re a product of our early market experiences, which shape our personality and identity as investors

Interestingly, the Great Recession has led the two generations to a shared perception of greater global uncertainty, with similar feelings about investing in stocks. Frank Murtha, a psychologist and managing director of the consulting firm MarketPsych, indicates in Money Magazine that this is not an unexpected outcome. “We’re a product of our early market experiences, which shape our personality and identity as investors.”

The impact of the 2000s with negative annualized return for the S&P 500 has drastically influenced the way that choose to invest. Their aversion to investing in equities is illustrated by an MFS Investment Management study that found young investors are more gun-shy about stocks than any other age group. Thirty-five percent of those surveyed agreed with the statement, “After what’s happened in the markets the past few years, I’ll never feel comfortable investing in the stock market.”

For those who have studied Traditionalists, these attitudes are all too familiar — and they know that the current bias against stocks could be long lasting. A May 2010 study by Ulrike Malmendier and Stefan Nagel examined the effects of major economic events on financial risk-taking. It found that people who grew up in the 1930s are nearly three times less likely to invest in stocks than those who reached adulthood in better times. And when they did invest, they put a smaller fraction of their money into the market. That held true well into their 40s, 20 to 30 years after the Depression had ended.

Taking into account similar experiences of uncertainty can help different generations discover their common ground in financial discussions. Grandparents can share their wisdom and experience and combine forces with their grandchildren’s knowledge and energy to positively impact not only the individual relationship, but the success of the next generation.

Consider the four actions in the sidebar. Author Irene Peter writes, “Just because everything is different doesn’t mean anything has changed.”Hang onto these words as you begin to dialogue with Millennials. Learn to see perceived differences as an opportunity to dialogue with the “next gen” and discover and promote your shared core values.