Why Talking About Money Matters

This week is national Talk Money Week, an opportunity to have open, honest conversations about money with the people you care about. According to the campaign, 9 in 10 adults in the UK don’t feel comfortable talking about money, despite events like the coronavirus pandemic making these conversations all the more important.

The Talk Money campaign equips people with the knowledge and resources they need to feel confident talking about their finances, having a positive impact not only on personal relationships, but on both mental and financial wellbeing. Financial wellbeing is having a feeling of control over your finances. It means that you feel confident in the decisions you make and resilient in the face of difficult circumstances.

Being open about money with loved ones is an important step to improving your financial wellbeing, but also a result of it.

Older people

Some of the most difficult financial conversations can be those surrounding end-of-life plans. It’s normal to find these moments upsetting and emotional, so going into these conversations with an idea of what you might say and what you hope to achieve may help.

Deciding how you will fund later-life care, or discussing wills and inheritance are difficult but essential conversations to have, particularly since in the UK, less than half of the adult population has a will. But initiating open dialogue with relatives is an important step in alleviating worry for all parties involved.

Children

Talking about money with children from an early age is valuable for their financial independence in later life. This can start with something as simple as negotiating pocket money. Getting children involved in the process of opening Junior ISAs can help them to feel financially empowered from a young age, developing their understanding of saving for the future. With good practice, when children eventually reach university age, conversations about budgeting, maintenance loans and rent may seem easier to approach.

Partners

A 2017 study by relationship charity Relate found that money is the biggest cause of strain on couples’ relationships. Talking about money with a partner may not be romantic, but at any stage in a relationship, it is important that there is mutual understanding when it comes to finances. This means when you are thinking about opening a joint bank account, getting married, or having children, you can have confidence that you are both honest about your finances.

It is normal to have different attitudes to money from your partner. Talking these through allows both parties to understand these differences and make financial decisions accordingly.

Above all, Talk Money Week can be an opportunity to be honest with yourself about your finances. The campaign encourages people to make a pledge for the week, a simple but effective step on the path to financial wellbeing.

If you would like to talk to a member of the team here at gpfm, please don’t hesitate to get in touch over email enquiries@gpfm.co.uk or call 01992 500 261.

This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions. Investments can go down as well as up and you may get back less than you invested.

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About gpfm

gpfm are an independent financial planning company dedicated to the provision of personal, professional, and objective-driven advice for our clients. We have been awarded the Chartered Financial Planners title by the Chartered Insurance Institute for offering high quality, independent and informed advice that meets the needs of our clients.