At some point in our lives, we've probably all heard the conventional wisdom "never discuss politics, religion, or money." I understand the idea behind the advice. These topics can be very polarizing and often lead to heated debates. Discussing any of these can be difficult, but generally, disagreements have the potential to lead to productive conversations and new perspectives. 
Regarding money, I believe one of the best ways to learn about it is to speak with others about their experiences. Open money conversations can help you share knowledge and learn from others. They can also help you develop empathy and strong bonds with people around you. After all, money is a very personal and emotionally charged topic. Your willingness to open up about it can completely change the dynamic of your relationships. 
There are three environments where I feel we can benefit most from money conversations: with friends and family, with your partner or spouse, and at work. 

Money talks with friends and family
I was fortunate to have money conversations with my family growing up. Each month, I watched my grandmother as she kept meticulous records of her budget in a green notebook. By witnessing her good money habits, I learned the importance of saving and living within your means. My uncles also taught me the importance of saving for a rainy day. As I paid my way through college and eventually worked as a financial planner, I carried those lessons with me. 
Having money conversations with your family has countless benefits. Even when you've made mistakes or have regrets, sharing your experience with others could prevent someone you love from repeating the same misstep.
Having an opportunity to speak with others who know more than you or share knowledge that you've gathered along the way is beneficial to all. Throughout my career, I've seen many first-generation millionaires who fail to teach their children the many lessons they've learned. A study by the Williams Group Wealth Consultancy showed that 70% of wealthy families lose their wealth by the second generation and 90% by the third. One of the reasons for this drastic decline is the lack of communication. Teaching your children about finances and sharing your intentions for the money you've worked so hard to accumulate can help your wealth last for many generations. 
Sharing money lessons with friends is also a great way to learn and support each other. As you learn new things, you can share them with those in your circle. Realizing financial success can be rewarding, but it's no fun when you get there alone. Find a group of friends who share common values and goals and hold each other accountable. That way, you can celebrate your successes together. 
Money talks with your spouse or partner
Money remains one of the leading causes of divorce. Having open money conversations with your partner — particularly before marriage — not only helps maintain a happy, healthy marriage, but can also play a role in building wealth. 
We each have a money story that is rooted in our life experiences. Those experiences can shape our values, attitudes, and behaviors around money. Sharing your money history with your partner can help you understand each other's perspectives and the "why" behind your money decisions. 
It would be best if you also take time to understand your financial situations, your life goals, and how you will split financial roles and responsibilities. These discussions can help bring potential money issues to the surface so you can get on the same page and decide how to resolve disagreements best. 
Communication is essential in all aspects of a relationship. Prioritizing communication about money with your partner can help create a safe space and deeper connection. If you're already married or years into a long-term relationship, it's not too late. The sooner you address money as a couple, the better. 
Money talks at work
Of all environments, the workplace is one of the most challenging settings for money conversations. But for women and people of color, these conversations can reap tremendous benefits. 
Talking about money — particularly compensation — can create the transparency needed to increase pay equity. Studies show that gender and racial pay gaps can lead to as much as $1 million in lost earnings over a 40-year career. Many employers shun the idea of discussing salaries with coworkers, but employees' right to discuss their salary is protected by law. 
Money conversations are not just beneficial to employees. As a business owner, I've learned so much from colleagues about business finances. Fellow financial planners and business owners in my network have been very open about fees they charge, business expenses, profit margins, and mistakes they've made. As I've had opportunities to speak, write, and consult, colleagues have been open about how much they're earning. These conversations have helped me understand my value and, as my business grows, I have a strong, supportive network that I can lean on for advice. 
Discussing money with others offers the opportunity for us all to learn, grow, and support each other on our financial journeys. Naturally, you can't speak openly about money with everyone. Of course, you have to consider the environment and whether the other person is open to having a money conversation. But when you find those who are open to it, you can learn and share many valuable lessons along the way.

More Financial Planner Coverage

Source: Business Insider

Powered by NewsAPI.org