It's not easy for people to speak openly about money. And how can we
when schools usually don't teach it, and a lot of parents avoid bringing it up with
their kids. As a result, we even grow up thinking it's rude to discuss money.
There are a number of reasons why people don't talk about it.
For one, it's seen as taboo. For most people,
talking about money feels wrong. Stuff like income, budget, and spending habits
just don't pop up in everyday conversations. Plus, we don't learn much about it growing up,
so it leaves us with negative emotions like confusion, guilt, and shame.
Another reason is to avoid conflicts. It can be scary to talk about finances with
your spouse or friends, and they might get defensive if it makes them uncomfortable. So,
to steer clear of all that drama, we often avoid talking about money altogether.
The fear of facing reality plays a big part too. You see, a lot of folks are just plain terrified
to deal with their financial situation and be honest about it. Being in debt or not knowing
how to handle money can feel overwhelming, which makes it hard for us to talk about.
And lastly, some people are just naive about the impact of financial stability.
They might not realize the consequences of thoughtless spending, or maybe they're young
and think they have all the time in the world to figure it out. Because of this,
they don't know how to start a conversation about finances or even where to begin.
But, did you know there are actually many benefits of talking about money?
For one, it helps you reach your goals. You see, when you share your financial aspirations
with others, like paying off your mortgage, growing your savings and investments, budgeting,
or planning for early retirement, you're more likely to achieve them. Plus, you can get some
pretty useful advice and insights on how to make it happen and what options are out there for you.
Also, talking about money can actually help you save and manage it better. You see,
it's an important life skill, especially when you're working towards your future
goals like education, marriage, investing, or preparing for unexpected risks. You know,
the friends we hang out with can have a significant impact on how we handle
our finances. In fact, most of us pick up our spending and saving habits from our friends.
And guess what? It's also great for your relationships.
Being honest and open with your partner about money is super important for building a strong,
lasting relationship. Money topics pop up all the time, from splitting the bill on date night
to budgeting for groceries, buying a new car, or saving up for a vacation. Understandably,
talking about finances with your partner can be tough, especially if one person earns more than
the other, but it's necessary and should be a part of your everyday conversation.
Plus, it can help lower stress and anxiety. Research shows that more than a third of us
feel stressed just thinking about money, whether it's worrying about bills, debt,
or needing some solid financial advice. There are tons of ways to deal with financial anxiety,
and talking to someone helps people find solutions and feel less stressed.
Lastly, it's a great way to teach kids key financial lessons. While some parents might want
to shield their kids from money conversations or tough topics, sharing positive money stories is a
fantastic way to help your family get comfortable with discussing financial topics. Setting aside
time once in a while for family money talks can contribute to your family's financial goals,
and your kids will learn valuable lessons that'll help them as they grow into adulthood.
How to begin talking about money
So, you want to start talking about money, but you're not sure where to begin? Don't worry, we've
got your back! The key to starting conversations about money is understanding that the
circumstances and environment can significantly influence how these discussions unfold.
So to help you out, here's how you can go about that conversation.
In many ways, it should be easier to talk about money with your partner or
family than with anyone else. As with any other subject, the key is to use the rules
of feedback. Be open and honest about the effect of your partner's behaviour on you.
In other words, don't take too much time before having the conversation,
but pick your moment carefully so they are receptive and also give them time to respond.
The time to know about your partner's finances is when they begin to mix with yours. This
will often be when you start living together and paying bills jointly. It's at this point
that your partner's finances can begin to have a more significant effect on yours and vice versa.
The good news about moving in together is that it can cost less to live together and share expenses
than living on your own. So by living together you'll have opportunities to save and invest
that wouldn't be available otherwise. But you want to avoid the frustration that comes if you
and your partner have completely different attitudes and goals about money. In truth,
couples are never going to completely agree on everything. But it's working
out what your differences are, that can lead to a win-win outcome.
We all have different attitudes towards money. You might be cautious and always
saving your pennies. Or you might feel that money is there to be spent. It's
completely alright to have differing opinions about money, we all come
from different backgrounds after all. What's important is how we manage these differences.
One way to start a conversation is to share one of your own financial goals. This may prompt them
to share their own financial goals and start a more serious conversation. It's much easier
to sort problems if you talk about them openly. Talking about money and solving problems together
can help make your relationship stronger as well as help you to resolve your problems.
If you're blessed with kids, involve them in conversations about money so they can
develop confidence and literacy in this subject matter. When discussing budgets,
welcome them to the table and introduce them to money basics. If you show them
you're comfortable talking about money they're more likely to absorb wisdom
and confidence and enter adulthood prepared to manage their finances.
Talking about money at work
Here's what you need to know, breaking the taboo of talking about money isn't going to
happen overnight. But when it comes to work, don't feel embarrassed about asking your boss
for a raise if you think you deserve it. You see, they probably don't feel awkward discussing your
income, so why should you? Just make sure you have solid reasons to back up your request.
Now, I know that most companies keep salary info hush-hush, and employees
are often discouraged from talking about their pay. But did you know that the National Labor
Relations Act actually protects your right to discuss work-related matters,
like pay? However, just because you're free to talk about it doesn't mean it's easy.
You see, a lot of people decide not to share their salary details with co-workers because
of the whole money taboo. But studies show that workers get better pay and feel happier when
there's a culture of salary transparency. If your company isn't fostering that kind of openness,
maybe you and your colleagues can start it in your own work group.
Keep in mind that building trust between co-workers is essential to break through
the salary taboo. If you decide to ask someone about their salary, make sure they understand
why you want to know. Maybe you're both hoping to negotiate better pay or create
a more transparent work environment. Or maybe it's just nice to know you're not alone in this.
You see, salary transparency isn't just about getting better raises—it's also about closing
the pay gap and promoting gender and racial equality in the workplace. When salary info is
out in the open, organizations have to justify their pay decisions, which helps reduce bias.
But remember, some conversations are better off the record and away from the office. So
if you're passionate about promoting openness, why not start a group that meets regularly to
chat about negotiating pay raises, advocating for equal pay, and other money-related issues?
Talking about money with friends
Our closest friends tends to be the ones we can chat about anything with, whether
it's work, personal life, and all sorts of stuff,
it's easy to confide in them. But when it comes to money, things can get a bit awkward.
So, how can we start talking about finances with our friends? One way is
to make sure our chats are judgment-free. Remember, we're friends with these people
because they like us for who we are. Just like any other conversation,
money talks should be honest and open. Keep in mind that everyone's financial journey is unique.
If you're going through some financial challenges, chances are your friends have been there too or
are dealing with something similar. They might be happy to share their experiences and lessons
learned, or maybe you can learn together. And since these are your close friends,
there is no need to worry about looking silly in front of them.
It's also important to communicate your financial boundaries. Going out with friends can be a blast,
but sometimes it's just not in the budget. It might feel awkward to say so, but being upfront
about it will lead to healthier friendships. It's totally okay to set boundaries that keep
you on track with your financial goals. A true friend will understand and won't pressure you.
Oh, and try not to compare yourself to your friends when talking about money. It's easy
to feel like you're ahead or behind, but everyone's journey is different.
What matters most is enjoying each other's company, not how you're spending money.
Sure, talking about money can be uncomfortable, but sometimes it's better to face the awkwardness
than to avoid the topic altogether. The upside is, investing time and
effort in these conversations can strengthen relationships and help you in the long run.
However, not everyone will be ok discussing money right away,
but if you're open about finances, you might help others relax and join
in. That way, everyone can benefit from the exchange of information and support.
Well, that's all for today's video. Let me know your thoughts with a comment down below,
and don't forget to like this video it you enjoyed the content.
With that said, have a great day and see you in the next one.