Aussies are too shy when talking money
To say money can be a sensitive topic for some people is an understatement.
Unfortunately though, that means people tend to avoid broaching the topic altogether.
Which is quite troublesome, because without communication actions like keeping track of your finances, choosing the correct financial products and maintaining financial control for a whole family can be difficult and individuals can find themselves in strife.
A 2014 report from the Australian Securities and Investments Commission (ASIC) found that 31 per cent of Australians find the process of dealing with money stressful and overwhelming, and 20 per cent of Australians feel as though there is nothing they can do to change their financial situations, which is a startling set of statistics.
Natasha Panagis, a financial advisor at the firm Strategy Steps, reiterates the need for increased financial literacy, “A lot of people don't know where to begin. You don't need to be a financial adviser to give this type of information. It's important to raise these issues and help people to get started.”
The importance of being able to talk with your family about money should not be understated and with a bit of planning you can forge an open dialogue that will lead to healthy money habits.
As with anything like this though, there requires a bit of understanding and willingness for a bit of give and take with your partner, children or other members of your extended family. By including everyone involved with financial discussions, keeping your goals front and centre and choosing your words carefully you can ensure that you broach sensitive topics with care.
By being more open to talk about money with your family, you can do the following:
- Consolidate an approach to manage everyday expenses
- Make clear plans for the medium and longer term
- Shop around for financial products and understand and assess investment risk
- Effectively use information, tools and guidance on hand
- Make savings behaviour more effective and manage debts
Talking about finance is the best way to get your head around some of the more complicated aspects of the market that, while largely out of your control, can have a huge effect on your individual investments. An awareness of complicated financial topics like risk-return pay off, diversification and inflation you can ensure you’re better placed to achieve your own individual financial goals.
The most important thing however is honesty.
Whenever you’re talking about these matters sensitive topics are bound to come up and people may feel the urge to tell others what they want. While the truth is sometimes hard to hear, it’s going to come out sooner or later.
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