Don’t Be Afraid to Talk About Your Finances
People don’t bring up money management and personal finances in conversations on a daily basis. Studies show that people would rather talk about politics or religion than money. Why are we so afraid of having the money talk? Should we be more open about sharing our personal finances, know-hows, and mistakes? Today, we’re breaking down the money taboo as well as sharing the importance of talking about money.
Why are so we afraid to talk about money?
It’s considered impolite to ask about someone else’s money or even talk about your own money in the U.S. This social norm is called the “money taboo.” Due to the “money taboo,” many people don’t talk openly about personal finances. Also, talking about money can evoke a lot of different emotions like shame, fear, embarrassment, or guilt. There may be a fear of being judged when you talk about your personal finances. Some people feel embarrassed or guilty because of their lack of knowledge in finances. Others may feel ashamed because of their spending habits or money mistakes. These are all very valid reasons to not want to talk about money. However, when we don’t talk about money it can hurt us financially and relationally. Here’s why.
Why we should talk about money
Not talking about money with others hinders us from developing strong personal financial skills. The silence can cause our money problems to get bigger. By avoiding or ignoring our personal finances it can cause us more damage. Talking about money helps us identify our relationship with money and the role it plays in our lives. These money conversations are also very important for couples. Couples need to discuss how to manage their money together so that it does not strain their relationship and financial security.
Having conversations about money helps us be more financially prepared for future events and manage our money wisely. Through open and healthy discussions we can achieve our financial goals, learn to invest and prepare the next generation for smarter money management.
Who can I talk to about my personal finances?
There are many different people you can talk to about your personal finances. Your partner or spouse, trusted family members, close friends, and even a financial advisor. Talking with your partner about money management helps lessen the burden as both of you work together. Consider going on “money dates” where you talk about finances together so good financial decisions and investments can be made. Trusted family members and close friends are also good to talk to because they have different experiences and tips that may really help you understand your personal finances better.
If you don’t feel comfortable talking to family or friends try talking with a financial advisor. These are professionals who have a strong understanding of how to manage money. A financial advisor is like a money coach. They help you understand, learn, and guide you to achieve your financial goals.
How to talk about money
So now that we know the importance of talking about our personal finances and who to talk to how do we talk about money? First, you want to plan the conversation. Make a clear list of your own goals and questions about money. The actual conversation should be set at a specific time and a private setting. These money talks are not about the actual numbers but rather about strategies, tips, and stories. As you have open and honest communication it will become easier and more natural to talk about money with others.