Financial matters are part of our everyday reality, and often, we just aren’t comfortable talking about money with our partners, family members, or friends. But, having open conversations about money is important at any stage of life. Here are some tips for navigating these conversations with confidence and making them more productive.
1. Normalize the discussion around money. You don’t need a special occasion to discuss finances. Whether you’re educating your children about balancing their budget, sharing your financial matters with your spouse, or asking your parents about their long-term plans, having more frequent discussions will help money talk become less taboo. Open and honest communication is key.
2. Identify the values and biases that drive your financial behavior. What events may have contributed to your beliefs? They may have been reasonable beliefs in the past, but do they apply to your current situation? Are you willing or able to adjust your biases? Understanding why you value money the way you do will help you navigate money discussions with others and hopefully find some common ground during those difficult conversations.
3. Understand that how you value money may not be the same as how your spouse, parents, or children value money. Our biases and beliefs around money direct our behavior, and some of those biases can date back generations. Refrain from judgment when discussing financial matters with a friend or family member. Try to take the emotion out of the conversation by sticking to facts and finding common ground. If they ask for your opinion, be honest and straightforward, but try not to criticize their biases or make the discussion about you. Gently pointing out their unconscious beliefs may help them change their behavior in the future.
As with most things in life, communication is critical, and the more comfortable you are communicating with your loved ones about money, the easier it will be. Time and practice will make this task less challenging and more enjoyable.
RCG Women's Initiative Mission: We launched the RCG Women’s Initiative to provide unique opportunities for our female employees to host events that will educate, entertain and facilitate networking with our female clients. Our hope is that by hosting events that address our female clients’ specific interests, we’ll empower them to find their financial voices. Due to the impact of COVID-19, we’ve moved to email communications in place of events.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. This information is for educational purposes only and should not be considered investment advice or an offer of any security for sale.
