3 good reasons to talk about money with your friends

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Open and honest communication can improve your life in many ways.

Key points

  • A survey conducted in April 2022 showed that 56% of adults surveyed believe that talking about money with others is “taboo.”
  • Your friends can be a source of financial and cheerleading advice.
  • They can also be a sympathetic ear to vent about mistakes and financial mishaps.

Talking openly about money can be uncomfortable or even scary, even now in the year 2022. A study of 2,000 adults conducted by Questis and OnePoll earlier this year found that 56% of respondents believed that talking about money with others it was “taboo”. Additionally, 58% admitted to faking their financial situation on social media to appear more financially stable. Oh!

I’m a big believer in open communication, and in the course of getting better with money and paying off debt this year, I’ve also become an advocate of talking about personal finances with the important people in your life, whether they’re family or friends. Read on to learn why it’s worth overcoming your money problems and sharing your financial gains and losses.

1. You can receive or give advice, for free!

If money is a topic you may feel more comfortable discussing, you can ask a knowledgeable friend for money advice. A quick warning here: Unless you’re lucky enough to be friends with financial professionals, it’s best to take all free financial advice with a grain of salt. Social media is littered with people having a free platform, and as a result, there are some really terrible money tips out there. So if your friends advise you to apply for a particular credit card or use a certain brokerage firm, it’s a good idea to do some research first to see if that product is really right for you. In that sense, consulting with a financial adviser is also an excellent idea.

That said, if you’re looking for a new credit card and know you’ll be spending a lot of your spending at the grocery store, it’s a smart move to ask around in your circle of friends and see if anyone has one. great recommendation for a card that offers cash back for grocery expenses. It’s nice to get real user feedback from someone you know and trust. Similarly, if you’ve never invested before, you probably have some questions about how 401(k) plans and IRAs work, and your investment-savvy friend might be willing to give you a quick rundown.

If you’re more open about money matters, you could also become the go-to person for others. I’ll share an example: A few months ago, a dear friend was having trouble with her banking situation and was faced with the need to pay a bunch of accumulated overdraft fees. Knowing that she worked in personal finance content, she asked me for information on personal loans and how to get one. She was happy to point you to helpful resources. It feels good to help a friend.

2. You can find allies

Just as it’s important to have financially savvy friends in your life, it can also be great to have some money cheerleaders. If you’re comfortable talking about money, you can share your financial gains and maybe get some encouragement to pursue your money dreams. No one wants to be scolded for money, but if you can be honest with your friends about your intention to spend less on eating out or shopping for clothes, they may be willing to help you with that goal (or at least not actively work on it). against him). ). If you normally go shopping and then for lunch on a Saturday, you can work together to find an alternative, less expensive way to spend time together. And unless you’re hanging out exclusively with the wealthy, your friends are likely to appreciate your encouragement to save money, too, at a time when inflation is so high and the cost of daily living has skyrocketed.

3. You can vent in a safe environment

Again, unless all of your friends are rich (and sometimes even if they are!), there’s a good chance they’ve experienced financial frustrations from time to time. If you apply and get turned down for a credit card you really wanted, or if you’re in a car accident and have to look up your auto insurance deductible to get your car fixed, it’s good to have people you can vent to. Sometimes you have a bad financial day (or week, or month…), and a sympathetic ear can make all the difference, even if that friend can’t help you in a concrete way.

Let’s end the taboo of talking about money. Being open and honest with your friends about your financial situation can help you get better, help them get better, and can even strengthen your friendships. For all these reasons and more, it can be really good for your finances.

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