August 16, 2021 UFinancial

Why is it so hard to talk about money?

People always say there are 3 topics you should always steer away from in a conversation: politics, religion, and money. How did money end up in that pool?

Considering that Australian household debt is one of the highest in the world and 8.2% of the $2 trillion household debt we collectively owe is considered “bad debt”, shouldn’t money be on our top list?

Australian household debt

Source: OECD Data

 

Talking about money can make some people feel very uncomfortable. A 2018 study found out that only 1 in 10 Australian parents felt comfortable disclosing their salaries to their kids.

Have you ever felt embarrassed to tell your friends that you don’t want to split the bill evenly because you only had a small entrée or to have an honest talk with your partner about their spending habits? Most of us have been there. Even the characters of 90’s sitcom Friends didn’t escape the awkward money conversation.

 

Why is it so hard?

‘It is emotional and it’s also this concrete thing’, said financial therapist Amanda Clayman on the award-winning podcast Death, Sex & Money.

There isn’t a simple explanation for our unwillingness to talk about money. We can lay the blame on social etiquette for transforming money into a taboo. Perhaps avoiding the money talk might stem from fear of judgement and talking about it might reveal something we’re embarrassed about, like a huge credit bill or too much spent on takeout. There’s also the case that for many, self-worth is intrinsically linked to financial worth, and finding out that your friend earns more than you might affect your sense of self-worth.

 

Why it’s important to start the conversation

 Avoiding the money talk is something we need to get over with. Here are 4 good reasons to do so:

  • Being open about your financial habits and goals with your partner can save you a lot of trouble down the road when you decide to buy a home or start a family.
  • Teaching your kids about money will help them develop healthy financial habits. ‘Without a working knowledge of money, it is extraordinarily difficult to do well in life’ advises Sam Renick, a field expert specialized in financial education for children.
  • Talking about money can improve your financial knowledge – you can learn from friends and family about budgeting and investing tools and tips, for example.
  • Sharing your financial goals with someone you trust can help you stay accountable. Sticking to a budget is not always easy and sometimes it’s hard to shake that FOMO feeling off. Sharing the load can help you stay on track.

At UFinancial, we love talking about money. From home loans and refinancing to financial planning, investing, and accounting. Start the conversation here.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.
author avatar
UFinancial
Google Rating
5.0
Based on 329 reviews
js_loader

Selling Your Home Guide

Name

Renovating Your Home Guide

Name

Paying Off Your Home Guide

Name

Building a Home Guide

Name

Professional Loans Guide

Name

Self Managed Super Fund Lending Guide

Name

Free Investment Property Analysis

  • This field is for validation purposes and should be left unchanged.

Free Property Report

  • This field is for validation purposes and should be left unchanged.

Talk to us today

  • (e.g. 0422999222 or 0396869087)
  • This field is for validation purposes and should be left unchanged.

Download our free Property & Investment tips

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download our free Construction Guide

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download our free Refinancing tips

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download your property investor tax checklist

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download your free budget template

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download your tax checklist

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download our free Home Loan tips

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download our free Money Management tips

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Refer a Friend

  • (e.g. 04222999222 or 0396869087)
  • This field is for validation purposes and should be left unchanged.

Let's talk about commercial and asset finance

"*" indicates required fields

(e.g. 0422999222 or 0396869087)
This field is for validation purposes and should be left unchanged.

Accounting & Tax

What are you interested in?

  • This field is for validation purposes and should be left unchanged.

Subscribe to our newsletter

Financial news, blog posts, special events, giveaways and promotions. – please register below.

Let's chat about your car loan options

Car loans

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Let's chat finance

Financial planning

  • This field is for validation purposes and should be left unchanged.

Let's chat about a new loan

Upgraders

  • This field is for validation purposes and should be left unchanged.

Let's chat about property investment

Property Investors

  • This field is for validation purposes and should be left unchanged.

Let's chat about your refinancing options

Refinancers

  • This field is for validation purposes and should be left unchanged.

Let's chat about a loan for your first home

First Home Buyers

  • This field is for validation purposes and should be left unchanged.