Talking About Money & Its Generational Impact
Discussions about money can be extremely uncomfortable, trust me I know! I really never enjoyed talking about money. However, like with most issues the best approach to tackling financial issues is invariably to talk about them.
Why? Well because the more open and honest people are about money, the better their life and relationships tend to be.
Finance: the last taboo
There’s a wide variety of reasons why women & men don’t like to discuss their finances. In some cases, money is simply viewed as a vulgar subject to talk about, while many others lack financial confidence and therefore feel foolish discussing their finances; for others it’s easy to just ignore the issue altogether or simply leave it to someone else to sort out. Yet for a few it’s the fear of being judged that stops them from speaking about their finances. As women we all want to feel safe and secure, and as much as we need financial security, verbal conversations about money (whether we have too little or too much) do not always make us feel “safe”. As a result, many of us don't like to talk about money, which means finance stands out as one of the last taboo topics in our society.
Importance of financial conversations
A failure to communicate about money though can lead to serious problems especially for other family members. Especially when it relates to raising our next generation and the importance of nurturing a sense of financial responsibility that will ensure they are ready to take control of their finances. When it comes to building generational wealth, the first step is to build a foundation of financial knowledge before you hand over “the keys to your castle” i.e. an inheritance. Afterall you wouldn’t hand over the keys to your car to your child (no matter whether they are 17 or 37) and let them drive on their own on the highway without them taking any driving lessons first and obtaining their drivers license. Or would you?
It’s also critical in relation to our older parents, or family members as, if discussions have not taken place, there is no way of knowing their wishes when important issues relating to their financial future inevitably emerge. For example 62% of the UK population between 45 and 54 haven’t even started to think about having a written will and 22% of people over the age of 75 still don’t.
Elephants in the room
While it is therefore vital to talk, discussing some financial topics can prove extremely challenging for many people. For example, parents often find it difficult to discuss issues surrounding inheritance and the transfer of wealth which means conversations with their children on this topic can be awkward or stilted. It is imperative, however, that parents do include their children when making financial planning decisions in order to ensure they are ready to assume responsibility for family assets when the time arises.
Finance paralysis
An inability to talk about money can also lead to personal finance paralysis, which is basically the fear of making a bad decision. This can result in people either delaying important financial decisions or not making any decisions at all ( and regretting it later). Talking issues through with a trusted confidante is a particularly good way to help alleviate such anxieties as it equips people with both the knowledge and conviction to make appropriate decisions.
Book a call
As with most things in life, it’s usually easier to figure out financial problems if you talk them through with someone you trust. Discussing issues with those people that matter to you can help get things into perspective and thereby aid the decision-making process. And remember, we’re always here to help too, so feel free to get in touch and start a financial conversation with us.
Book a call here to start your conversation about your money https://www.elizabethbuko.com/apply