How would you feel if someone started talking to you about money? Awkward? Nervous? Like you want to change the subject?
The truth is, you’re not alone. A recent survey carried out by the Money and Pensions Service found 55% of adults in the UK feel uncomfortable opening up about their finances. 33% of UK adults feel too uncomfortable to talk about money at all, even with loved ones.
But research shows that people who talk about money feel less stressed and anxious about their finances, and they feel more in control. They also make better financial decisions and have stronger personal relationships.
Let’s look at five positive impacts talking about money can have.
Financial Empowerment:
Do you know a person who is great at saving money? Ask them how they do it.
By discussing money openly, you can gain a better understanding of budgeting, saving, and managing debt. This knowledge will empower you to make informed decisions about your financial future, and lead to better financial independence and security.
Breaking the Stigma:
By starting conversations about money, you can break down barriers and create a culture of openness and support. Normalising discussions about money helps to remove the stigma associated with financial struggles and encourages people to seek help when needed.
It doesn’t need to be a deep conversation about your finances; it could just be about whether own branded Jaffa cakes are better than the branded ones (spoiler – they are!), or just a passing comment about how you’re struggling with rising costs. Any conversation about money is valuable, so start one and see where it leads.
Building Support Networks:
Money matters can be complex and overwhelming, especially when you’re tackling university life for the first time. By talking about and sharing your financial challenges and successes, you can learn from each other’s experiences and provide valuable support and advice. It can be comforting to know you’re not alone, and you can work together to figure out some potential solutions.
Setting Goals and Priorities:
Research shows you’re more likely to achieve your financial goals if you tell someone about them. Whether it’s saving for a post-graduation trip, paying off your overdraft, or even just buying those headphones you’ve wanted for a while, vocalising these goals makes them feel more achievable.
Cultivating Financial Wellness:
Just as physical and mental health are essential components of your overall well-being, so too is financial wellness. By talking about money, you can proactively deal with financial stressors and develop healthy financial habits.
So whether it’s discussing the price of beans, ways to budget more effectively, or how to save money in other areas of life, talking about money isn’t something to be feared or avoided.
Talking about money can bring a huge amount of benefit to both you and your friends, so today, try to start a conversation about money and help remove the stigma.