Money is a taboo subject, yet there are reasons why you should talk about money. Money is for a protection, and if you know how to manage your finances, you can achieve a lot in life. You’re likely to have a larger cash reserve, and with good money-management skills, you can avoid excessive debt. However, some people aren’t comfortable talking about money. Here are seven reasons why you should talk about money.
1 Possibly Avoid Arguments with Your Partner
Avoiding disagreements with a partner is one reason why you should talk about money. There is a link between money and divorce. For that matter, if you and your spouse never discuss money, you’re likely to have problems. But if you’re candid about debt, income and shopping habits, you’re in a better position to work through financial problems.
2 Establish a Common Ground with Your Partner
Talking about money can be a killjoy while dating. But as the relationship progresses, it's important to talk about money and establish a common ground. If not, you could experience long-term problems. For example, how does your partner feel about saving? Is he a spender? Is she serious about retirement planning? Is your partner an entrepreneur? Discussing these issues at the appropriate time can determine whether your partner is a financial match.
3 Teach Your Kids Good Financial Habits
Some parents are reluctant to discuss money with their children. Although you shouldn't divulge all your financial business, teaching them about money establishes a good financial foundation. For example, they’ll learn to distinguish needs from wants, budgeting, savings and responsible credit habits.
4 There's the Opportunity for a Pay Raise
Asking your boss for a raise can be scary. However, if you're afraid to discuss money with your employer, you might be paid less than you're worth. If you feel that you're underpaid, research salary ranges with your particular skills and education. With this knowledge, you're in a good position to negotiate higher pay.
5 You Can Adopt Smarter Money Habits
It's only by talking about money that you'll identify your mistakes. This doesn't suggest spreading your financial business to the world. But if a close friend or relative manages his or her finances well, getting advice from this person might uncover problems with your own budget.
6 You Can Get the Help You Need
If you’re afraid to talk about money, you may not receive needed help. This help can take many forms, such as financial education from your parents or spouse, or a lending hand if you fall behind on bills. Also, when you're comfortable talking about money, it’ll be easier for you to contact creditors and negotiate alternatives if you experience payment problems.
7 It's Easier to Stay on Budget
You don't have to share your personal finances with friends and family. But if others know your financial limitations, it’ll be easier for you to stay on budget. Don’t be afraid to turn down an invitation if you can't afford a particular activity. Also, don’t lend cash to someone if it’ll bust your budget. Rather than save face, be honest about any financial limitations.
Money doesn't have to be a scary or taboo topic. If anything, money discussions can improve your financial habits. Do you think it’s good or bad to talk about money?