It’s Time to Talk Money

10 November 2020

9 in 10 adults don’t feel comfortable talking about money. It’s time to change.

Talk Money Week is an initiative set up by the Money & Pension Service, running from 9-13^th November, that encourages everyone to have an open and honest conversation about their finances. According to the Money & Pension Service, Talk Money Week is “designed to increase people’s sense of financial wellbeing” and help people build a support network they can rely on in difficult times. Financial wellbeing is defined as:

“feeling secure and in control. It is knowing that you can pay the bills today, can deal with the unexpected, and are on track for a healthy financial future” (Money & Pension Service, 2020).

It is important to feel secure in your finances, and have support in this, because it is an important component of overall mental wellbeing and security.

Why Talk Money?

Many people find talking about their finances difficult and potentially embarrassing, and this is because of the stigma surrounding these conversations. A study by Lloyds TSB (2015) found the following worrying statistics:

43%of people felt embarrassed about talking about money
25% of people have lied to their friends and family about their finances
34% of people are not comfortable talking about their will
27% of people have lied to their parents about their finances
37% of people have argued with their partner about money

These statistics are concerning and show that people in the UK do not feel comfortable discussing their money with even close family. This means that people are more susceptible to scams, contributes the continued existence of pay gaps in the workplace (like the gender pay gap), puts strain on relationships, and can lead to worsening mental health conditions.

Research into discussions about money show that there are several benefits for participants, such as:

Making less risky financial decisions
Creating stronger personal relationships
Helping children develop better life-long money habits
Feeling more secure and in control of their money
Helping spread awareness of inequality in the workplace

This means that talking openly and honestly about money is essential to improving the overall mental wellbeing of the country, and helps give people access to the resources they need to protect themselves and their families during these difficult times. With unemployment set to rise by 4.8% during this year, there has never been a more crucial time to start having these discussions.

Let's Talk Money this November.