The Cost of NOT Talking About Money

How often do you talk about money with your partner? Your kids? Your friends or coworkers? For most people, the answer is almost never. Research has shown that 63% of adults don’t discuss money with family, 75% don’t discuss it with friends and 46% don’t even talk about it with their partner.1 In fact, most people would rather talk about death than personal finances. Think about that.

THE MONSTER UNDER THE BED

Why is talking about money so scary? Often, it’s because we’ve been taught it’s impolite to talk about finances and even rude to ask someone how much money they make. At the same time, most parents aren’t teaching their children the basics like budgeting, negotiating a salary or saving for retirement.
By not talking, we’re only creating fear and uncertainty around a subject that affects everyone. On the other hand, by discussing our challenges and seeking support from loved ones, we can find comfort in knowing that we’re not alone in navigating the complexities of retirement finances.

SILENCE ADDS UP

While talking about money can be uncomfortable, by refusing to have those discussions, we’re doing ourselves a disservice in the long run. For example, how often have you discussed your salary with coworkers? Never? Why not? Because we’re told it’s indecent, and yet pay secrecy in the workplace rarely benefits employees. If you discovered your colleagues were making twice as much as you, would you be more likely to demand a pay raise? What about bonuses? Being more transparent about salaries has also been shown to reduce the gender pay gap anywhere from 20 to 40%.2 By embracing greater transparency, especially during our working years, we are more empowered to demand fair value for our labor, increasing our wealth.

HEALTHY HABITS

Contrary to what we’ve been taught, talking about money is a good thing. Talking with a financial professional can help people make better, less risky financial decisions.3 Opening up to others about your concerns and experiences can also help lessen anxiety and even result in stronger personal
relationships. Furthermore, when children are engaged in money talks early on, they’re more likely to form good money habits in the future. And having transparent conversations about money prevents misunderstandings and conflicts, particularly when it comes to financial decisions among family members or partners. Openly discussing financial goals, expectations, and concerns fosters understanding and strengthens the bonds we share.

BREAK THE SILENCE

You know it’s time to start the conversation, but how? Here are a few ways to get started:

1. Acknowledge any discomfort with the subject, as this will help make the rest of the conversation easier.
2. Be honest about your financial situation and share concerns and goals. This authenticity fosters trust, encouraging others to open up too.
3. Practice active listening, show genuine interest in others’ stories and perspectives, and offer support and guidance where needed.

Sources: 1 Empower. April 19, 2023. “62% of Americans don’t talk about money according
to new Empower research, and their silence may come at a cost.” https://www.
empower.com/press-center/americans-dont-talk-about-money-new-empowerresearch. Accessed Oct. 24, 2023.
2 Johnny Thomson. Big Think. Aug. 18, 2022. “Talking about money is taboo.
You should break it.” https://bigthink.com/sponsored/money-discussions-taboo/.
Accessed Oct. 25, 2023.
3 Morgan Laing. Standard Life. Dec. 12, 2022. “Why now might be a good time to
talk about money.” https://www.standardlife.co.uk/articles/article-page/talkingabout-money. Accessed Oct. 24, 2023.

Learn more about your current financial status and how you can achieve your retirement goals with our ‘No Obligation, No Cost’ Five Step Retirement Review.

Our financial planners have wide knowledge in South Carolina Retirement System as well as experience in retirement planning. sc tax rebate, etc. Contact us today!

Securities offered through Arkadios Capital, Member FINRA/SIPC. Advisory services offered through Arkadios Wealth. Preservation Specialists and Arkadios are not affiliated through any ownership