Why I believe it is important to talk about money

Money has weaved through our everyday lives for generations and yet we have not been able to normalise talking about it.

As a result, discussing money has become an extremely emotive topic. Just the thought of having to deal with money; whether it is about managing large amounts of money for our long-term requirements or discussing debt; induces various emotions from extreme joy and confidence to fear and shame.

It is estimated that around 7.4 million people in the UK experience loss of sleep due to money worries. These are not just worrying about debt but also concerns about how to manage and maintain the money that has been accumulated over time. For those who have the fortune of inheriting large sums of money, it is not uncommon that they tend to worry about how to continue the legacy of the person (in most cases a parent) who has built the wealth that they have received.

Research undertaken by Censuswide on behalf of Charles Stanley found that:

• 24% of parents with adult children have talked openly to them about the issue of inheritance
• 30% of parents have talked to their family about their will and only 36% have made their children executors of their estate
• Although 36% of parents have made their children executors of their estate, only 11% of young people are aware that they are an executor.
• Children assume that their parents have made provisions, with only 19% saying their parents don’t have a will; in reality, 44% of parents don’t have a will.

In addition to the very practical reasons for why it is so important to talk about money with family members, it is essential that we acknowledge the effect that money has on our mental and physical health and the implications this can have on the wider family.

Below are a few top tips that I hope will enable you to start the money conversation with a loved one:

• Set aside some time to have the conversation with no distractions and interruptions.
• Be prepared to talk openly but also be prepared to listen.
• Be mindful of the emotions of everyone taking part in the conversation.
• Acknowledge that you cannot cover everything in one discussion and that this will be an ongoing process.
• Use this article as a starting point for the conversation.
• If you are finding it difficult to start the money conversation with a loved one, then contact a financial professional who will have experience in facilitating such discussions.

To discuss any of the themes raised in this article, or to find out how Charles Stanley could help you create a more secure financial future, contact a member of our Plymouth team. 

Call us on 01752 545 969, email plymouthbranch@charles-stanley.co.uk or visit www.charles-stanley.co.uk/help-and-contact/people-locations/plymouth

The value of investments, and any income derived from them, can fall as well as rise. Investors may get back less than originally invested. The information in this article is based on our understanding of UK Legislation, Taxation and HMRC guidance, all of which are subject to change. The tax treatment of pensions depends on individual circumstances and is subject to change in future. This article is solely for information purposes and does not constitute advice or a personal recommendation. Charles Stanley & Co. Limited is authorised and regulated by the Financial Conduct Authority.