5 Essential Money Conversations Everyone Should Have

Most of us may not like to talk about money, but some money conversations can help improve our finances. Here are five such money conversations none of us should avoid.

Even though people often say that money talks, money is not all that often talked about. Finances don’t make for relaxing dinner or lively party conversation, and it means that money remains the untouched fancy vase in the room that everyone can see (but nobody mentions).

Conversations about money are essential to your financial health. There are some crucial conversations about money that everyone should have, and likely will have to have, during a lifetime.

The best time for a financial talk is sooner rather than later. Conversations allow you to recognize problems early and correct them before they grow dangerous.

If your finances are under strain or stress, it’s common to want to avoid bringing it up with your bank manager, partner, or spouse. But avoiding the topic rarely solves the problem and often makes it worse.

Being open about your finances can also reduce stress. Your mind will focus on solutions instead of possible calamities.

Here are the essential conversations about money that everyone should have and more about what these conversations can do to make your finances better for the future.

The Conversation About Household Money

If you live in a household, money is integral to how well the household can function. Financially open households work like fine-tuned machines, but hidden money issues can crack the foundations.

Speak to your partner, roommate, or (if you live alone) with yourself about income, expenses, and budget.

Why Have It:

The household conversation reveals your current financial standing and potential problems. It might also uncover possible actions you can take to better your financial future.

Related: 6 Steps to a Successful Money Talk with Your Mate

The Conversation About Saving Money

“Saving money” is a common financial mantra, but it always feels easier said than done. You’ll want to discuss how you can get more into your savings account. Side jobs and finding your unique, salable talents are good starting points. Reducing expenditures can also be a source of savings.

Why Have It:

Saving seems like a dirty word in a challenging financial climate. But discussing options (like “Let’s buy at a cheaper store” or “Let’s cancel one of the streaming services”) won’t happen if you don’t discuss it.

Related: Big vs. Little Savings: Which is Better for Your Finances?

The Conversation About Owed Money

Debt is never a death sentence for anyone’s finances, even though it can sometimes feel like it. If you are in debt, the most important thing you can do is have an open conversation about your financial standing with the credit provider.

Explain your current financial situation, and make appropriate arrangements (instead of ignoring, sidestepping, or outright running from it).

Why Have It:

Ignoring a credit problem will lower your credit score. Speaking with your creditor allows you to find a solution.

Honestly, what would you rather choose if your situation is already dire? Break the ice and consider credit solutions or be afraid of potential credit problems and let your imagination run wild?

Related: Am I A Good Candidate For Credit Counseling?

The Conversation About Assets and Money

Just like any business or corporation, you as a person have a monetary value on paper – and that, usually, is made up out of your assets. These are your savings accounts, but also anything of value. Either a possession (house, antiques, etc.) or a skill that can be used to make money.

Why Have it:

Measuring your assets periodically will help you determine if you’re on the right path to financial well-being.

Related: What’s Your Net Worth? (And Why Should You Care?)

The Conversation About Money Left Behind

Money matters are just as important once we are no longer around to spend it ourselves. Many legal professionals offer one free consultation, and it’s a good idea to use it to discuss your will process.

Without a will, the state determines what happens to your most important assets. Writing your will at the right time guarantees that you maintain control, even after you have passed away.

Why Have It:

Setting up a will should never be something that you’ll do later. It should be something you do right now or have already done. Preparing for the unexpected is one of the most crucial steps to take for a healthy financial future.

Related: End-of-Life Planning Everyone Needs to Do

Related:

• 4 Tools to Make Couples Money Talks Easier
• 3 Things to Avoid During Money Talks with an Overspending Spouse
• 6 Things to Discuss With Adult Children Before Leaving Them an Inheritance

Reviewed February 2023