In our family life, there are few occasions where we actually sit down with our parents, siblings, or children and actually discuss our budgets and what might be hindering us from reaching our financial goals.
In many cases, parents might feel worried about their ability to provide for their children, and children might feel uncomfortable in asking their parents for money or guidance to meet their wants or needs.
The ‘Money Talk taboo’, as it’s called, might see families avoid speaking openly about their financial situation. However, breaking this taboo – and having an honest conversation about your financial needs – can be a good way to put great money practices into place.
Here, we’ll unpack four reasons why breaking this taboo is for the best.
It helps families budget together
Budgeting is one of the most important financial tasks you can take on, as it helps you plan out your month in advance and can also help you track where you are in achieving certain goals. However, budgeting for your family without their input can be difficult, as you might only know certain aspects of what their needs or wants are.
Sitting down to budget with your family on a regular basis can help everyone involved develop a solid understanding of where the family at large is financially, and can help different family members contribute to certain responsibilities or tasks equally.
It can create goals for the whole family to strive for
Another great result of breaking the ‘Money Talk taboo’ is that when all family members are involved, they can develop goals together and can understand how and where they can contribute in the household.
For example, involving your wider family in developing a financial milestone – such as buying a new car, a bigger house, or even a holiday – can see everyone become involved in different (and often surprising) ways.
It helps children develop great financial habits
Though your children may learn a great deal about finance in school, the most important lessons about money often start at home. To help your child learn great habits and understand the importance of managing their own money when they reach adulthood, involve them in making important decisions and ask for their thoughts where possible.
Children who develop great financial habits early will often put their ideas into practice – from saving for items they want to eventually manage their own budgets and milestones once they become an adult.
It helps identify new opportunities to learn more about money
There’s no greater time to learn than when you find something you don’t know enough about. Speaking openly and honestly about your financial situation can help you identify where your shortcomings may be, where you can learn more about what you need to know.
Whether you need to learn great budgeting skills or don’t know much about investing, understanding the gaps between your knowledge can help you round out your skillset and reach your long-term goals. You might even find that by speaking openly about money, you find a friend of family member who can teach you something new.
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