It’s Talk Money Week. Something which isn’t just another national day to fill up the space between Halloween and Christmas, it is a valuable period to start having meaningful conversations with the people around you. Gone are the times where bringing up someone’s finances causes everyone to gasp in dismay; being open about money is more commonplace – but we still have some work to do.
We often brush our money conversations under the carpet as it is sometimes awkward or even stressful to discuss. Why is talking about money taboo, when the conversation can offer endless amounts of value, especially if we do it in the right way? Talking money with a friend, a partner, or even an employer isn’t just good for your mental health; it can lead you to a financially healthier situation. Whether you are employed or unemployed, married or single, in the depths of your career or retired, talking about money can only help you and the people you care about.
How to talk about money
Whether it be someone you live with, your children or even your elders, money is undoubtedly a topic of conversation which will come up at some point. Talking about finances can be a much easier process if you go about it in the right way. Before we explore the various positives, let’s ensure we know exactly how to talk about money:
- Select the right time and place – while money shouldn’t be an awkward topic, it is a sensitive one. Be sure everyone is in a comfortable, private setting.
- Be empathetic – If the conversation is about someone else’s financial situation and not yours, you should be wary of their stress and have some empathy towards how they prefer to lead the discussion.
- Keep things confidential – Before discussing finances involving someone who isn’t part of the conversation, like a partner, it may be worth assessing whether you should be highlighting things they would prefer to keep private.
- Avoid the blaming game – Various factors can cause someone to fall into financial turmoil, resist the urge to blame them if other external factors are at play.
Talking money with your partner
Exploring how to talk to a partner about money is not only beneficial; it is an essential part of your relationship. Your partner could be a business partner or a marital partner, either or, ensuring that conversation is open keeps things equal and doesn’t leave one party in the dark (which sometimes leads to dangerous waters).
Facilitating money talk within a relationship can allow you to plan for the future effectively. Where do you see each other in 10 years, where will you live, will you have a family? All of which are exciting questions that can only be answered, providing that there is transparency when it comes to finances.
Not knowing how to talk about money in a marriage is well-known to be a common reason for a relationship deteriorating. Consider sitting down with your partner and re-assessing your situations to work out what could or should be changed to benefit you both. This could help you by not only relieving pressure within the relationship but also freeing up some money to invest in things you love to do as a couple.
Talking money with your family
Discussing money can be a challenging, yet important process for family members, whether it be your children growing up and transitioning to adulthood, or parents and grandparents in their retirement.
Talking finances is tricky, particularly with senior family members who are somewhat dismissive when chatting about money, whether that be because they find it awkward, or because they think elders know best. However, the reality is that if they do not work, they are likely relying on a pension that should be treated with the utmost respect. Try and find common ground to talk if you are concerned that they are spending too much of their pension, or if you don’t believe they are aware of the scam tactics they should look out for. Talking money with them could make them more financially secure for years to come, more open to other sensitive topics of conversation, and give you both peace of mind.
If you believe a pension scam has targeted a family member, or they are entitled to mis-sold SIPP compensation, we can help have the conversation. We believe everyone should feel comfortable to talk money, but if more serious issues arise, bringing in an expert can ensure everything is dealt with effectively (with plenty of testimonials which say that we do!). So, why not contact us today?