Americans are generally reluctant to talk about money matters, even with family members or close friends, particularly credit card debt, salary and bank account balance, according to survey results released Monday by Bankrate.
“We always hear that it’s risky to bring up topics such as politics and religion at holidays and social gatherings, but our survey reveals that money and romance are much bigger taboos,” Bankrate’s senior industry analyst Ted Rossman, said in a statement.
“We need to get better at talking about money. Not that you need to spill all of your financial details to total strangers, but it’s important to be able to talk about money goals and challenges with close friends and family."
Fear of talking about money can lead to relationship problems like marital conflict or financial infidelity. It makes estate planning a minefield and can lead to personal and financial complications for heirs.
But there's evidence that these norms are shifting. Generation Z respondents reported more comfort with financial topics than other generations.
Bankrate sought to put Americans’ sensitivity around discussing money matters in context by asking how comfortable or uncomfortable they are discussing seven topics, including financial ones.
YouGov conducted the online survey in mid-September among 2,474 U.S. adults. Among them were 1,695 people who had lent money and/or footed a bill for a group expense with the expectation of being paid back.
Fifty-five percent of those who had lent money or paid for a group expenses reported that they had experienced at least one negative event in the process: 44% had lost money; 26% had suffered a damaged relationship, 7% had experienced a lower credit score and 4% had gotten into a physical altercation.
Financial advisors might have a client whose spouse does not want to meet with them, financial therapist Erika Wasserman told ThinkAdvisor in a previous interview. Invite the spouse out for coffee, she suggested, and don't talk about money at the first meeting.
"It’s about making it a safe place to start relationships and feel comfortable," she said.
See the gallery for how comfortable or uncomfortable different groups of Americans are discussing financial and other topics, according to Bankrate.
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