Opening up about your finances can be difficult. Yet, talking about money could improve your financial security and boost your wellbeing.
Every year, the Money and Pension Service (MaPS) hosts Talk Money Week, an initiative encouraging more people to start financial conversations. This year, it takes place between 6 and 10 November, and it asks everyone to do one thing that could improve their financial wellbeing, and inspire others to do the same.
So, if you’ve been putting off financial discussions, now could be the perfect time to tackle them.
Money plays an essential role in your overall wellbeing. Indeed, a Financial Conduct Authority report found that more than half of adults feel more anxious or stressed due to the rising cost of living.
Despite this, money conversations can still be seen as taboo, and some people struggle to communicate effectively when discussing finances. It can be particularly difficult if you have different views on how to manage money.
In fact, 26% of people in a relationship said they argue with their partner about money at least once a week, an Aviva survey found.
Making finances a regular part of your conversations could ease some of the pressure you may feel and help you see a different perspective.
To mark Talk Money Week, here are five useful conversations you could have with people in your life.
1. Speak to your partner about your retirement plans
Have you had a serious conversation about your retirement plans with your partner? From when you’d like to retire to the kind of lifestyle you want to live, having a detailed plan for the next chapter of your life could mean your dream is more achievable.
A clear idea about retirement can also help you work towards shared goals.
So, if you’ve only made vague plans, sitting down to really talk about what you’re looking forward to in retirement might be valuable. With a clear idea about what you want your future to look like, you can start to understand how much you need in your pension or how to use other assets.
2. Discuss life goals with your children
If you have children, Talk Money Week is a great opportunity to pass on your knowledge and money lessons.
During your life, you’ve no doubt picked up tips from both positive and negative money experiences. Sharing these with your family could help them embrace good money habits and avoid pitfalls.
As well as day-to-day finances, ask them about their long-term plans. You might be able to offer guidance as to how they could achieve their goals, or point them in the direction of professional advice if it may be beneficial to them.
Their response might also affect your financial plan. For example, if your child hopes to buy a home soon, would you want to lend some financial support?
3. Chat with your co-workers about your employer’s perks
Money can be a difficult topic to talk about at work, but discussing how to make the most of your employer’s perks could be a good way to start. Plus, you might discover some workplace benefits you’ve overlooked.
Perhaps your workplace offers discount shopping vouchers that could help reduce grocery bills? Or maybe your employer matches pension contributions to make saving for retirement even more efficient?
A quick chat about how you use workplace benefits could help you and your co-workers get more out of them.
4. Ask elderly relatives about how they manage their finances
Some people struggle to manage their finances as they get older. So, checking in with elderly relatives could provide you with peace of mind.
Some challenges could be simple to solve, such as if they find it difficult to manage online utility accounts. Others might benefit from professional advice, for instance, if they don’t feel confident using assets they’ve built up to create an income or worry they’ll run out.
Scammers are more likely to target the elderly too. Helping loved ones get to grips with their finances or taking over certain tasks could reduce the risk of them falling victim to fraud.
In addition, you may want to ask if they’ve taken steps like naming a Lasting Power of Attorney, which could provide security if they’re unable to make decisions in the future.
5. Talk to your financial planner about your concerns for the future
Even when you have a financial plan in place, it’s normal to worry about the future sometimes. If you have concerns about your long-term finances, discussing them with your financial planner could put your mind at ease.
You might have already taken steps that could calm your fears after a conversation. Or your financial planner could help you identify how to reduce risks in a way that suits your overall financial plan.
If you’d like to talk to us about your financial plan, or you want to understand how a financial planner could support you, please get in touch.
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future results.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts.