Why is it hard to talk about money?

Let’s face it. Talking about money can be awkward. Really awkward. Most Kiwis would prefer to talk about practically anything else. More than half of New Zealanders would prefer to talk about politics than about their finances. They’d even lie about their money situation just to avoid that conversation.

In other words, Kiwis would spend the whole BBQ listening to Uncle Chris describing what the government “should be doing” if it meant avoiding a casual chat about money.

There are heaps of reasons why talking about money feels awkward. For a lot of people, money is an emotional, even shameful, topic. It can feel like a catch-22. If someone has a good chunk of change in their pocket, talking about money can feel like bragging. On the flip side, if someone doesn’t have a lot of spare cash, talking about money can make you feel judged.

People don’t like to talk about money because they see it as too risky, no matter what angle you come at it from. The people at the Financial Services Council offer a 2-minute video with more info. While it focuses on women talking about money, their points are true for everyone.

Should we talk about money?

Talking about money is important, whether someone is asking for advice from their parents on saving for a car, or talking to a coworker about salaries, or discussing mortgage rates with a close friend. When you can openly and honestly chat about money matters, you allow yourself to learn and to be learned from. 

We’re not just talking fluffies and marshmallows here either. Being comfortable with talking about money has real positive effects on your financial well-being and the financial well-being of other people around you. Don’t believe me? Here’s the science.

• Kids with parents who talk about money with them are less likely to have credit card debt later in life.
• Talking to peers about savings goals helps someone make almost 4 times as many savings deposits compared to someone who doesn’t talk to their peers.
• Discussing money and long-term goals is linked to having a stronger marriage/relationship.

And that’s just the start of the benefits. Money is the tool that makes life happen. Talking about it might be awkward, but pushing through that feeling and doing it anyway is so worth it.

So the next time Uncle Chris starts revving up his next political tirade, try something new. Ask him about money and redirect that rant towards something more productive. 

Chatting about dollars? It just makes sense.

This was originally posted as an education article on the Money Sweetspot customer portal. If you read this as one of our customers, you would've earned some money off your loan! Do the mahi, get the treats. Find out more.

‍