MONEY TALK: NO LONGER TABOO

Talking about money and personal finances is perhaps one of the most classic British taboos*.  As the saying goes: “There are two things you never talk about in life: money and politics”.   

However, in an era where people are much more open talking about a variety of topics, why does ‘money talk’ still have to be secret? Why is it still considered taboo and almost crude? Is there anything that can help us get the conversations flowing?

Even amongst family, people would prefer to avoid the subject of money, in fact 43% of people don’t know how much their partner earns, and 36% are unaware of how much their other half has managed to save**. People would rather talk about almost literally anything, from marriage problems to religion, than bring up the topic of money.

It’s possible that these feelings towards ‘money talk’ are simply a hangover from an era where all money worries were pretty much handled for you. A more patriarchal era where your company watched over your pension, and even those on modest salaries could afford to buy their own homes. ***

But as we all know, times have most definitely changed, and financial security responsibility often falls as a deadweight on an individual’s shoulders, (shout out to high house prices, student debt and insecure job prospects for that one!)These troublesome times may have left many struggling to even build a savings account that they feel rivals their peers. Investing accounts seem like an untouchable deity.

You can read more about how society changes influence on different generations in our blog, ‘millennials vs baby boomers’.

If you aren’t talking about money, there are simply too many things you may be missing out on or paying way over the odds for. Talking about things like rent, expenses, what higher salary could be available, are all topics that if discussed, could help improve your financial situation. We’re not saying share the inner workings of your tax return with the stranger next to you on the tube (although, of course, you are more than free to do so if the mood so takes you), but it could be important to talk to your nearest and dearest about costs you are questioning, simply to get another perspective.

Talking about money is also vital for our health and relationships.  It ensures people make better financial decisions, develop stronger personal relationships, help children form good lifetime habits and feel less stressed and more in control of their finances, and in the long run, their life. ****.

Building money conversations into our everyday lives could help make us resilient to whatever the future may throw at us, be it a sudden income change or a dramatic life event.

However, it seems in social circles that people don’t like to talk about money, because it all becomes “too real”.  Perhaps there’s a certain level of self-awareness that comes with bringing up the topic; a sense of bragging or, if you’re short of money, awkwardness.

Another reason for avoidance could be confidence. UK school curriculars may soon feature Financial education*****, meaning perhaps the next generation will be a little clued up about money. However, there are many adults now who feel they lack a basic understanding of money and therefore don’t want to discuss it and avoid it at all costs.

The world of finance is daunting, (at Tavistock Investments Plc we understand that!) but it doesn’t have to be. You can also read more of our education blogs here to see how understandable the topic can actually be.

If things like average salaries, how much rent someone is paying or even car insurance are shared, knowledge around the subject builds, and the whole topic becomes less daunting. These comparisons may even lead to more savings for individuals.

As the world changes, so must our attitude towards money and our willingness to open up about our finances. The only way to change tradition is to go against the norm. Start the process today and join the revolutionary thinking.

Sources:

*https://themoneycharity.org.uk/talking-money-how-to-tackle-a-very-british-problem/

**https://www.makingsenseofcents.com/2017/06/talking-about-money.html

 ***https://citywire.co.uk/funds-insider/news/we-need-to-talk-about-money/a1023411

 ****https://www.fincap.org.uk/en/articles/talk-money-week-2018

 *****http://www.thefrugalcottage.com/why-is-it-wrong-to-talk-about-money/