5 Essential Money Conversations Everyone Should Have

by Alex J. Coyne
Essential Money Conversations Everyone Should Have photo

Most of us may not like to talk about money, but some money conversations can actually 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 important to your financial health. There are some essential conversations about money that everyone should have, and likely will have to have, during the course of 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 almost never 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 a fine-tuned machine, but if money issues are hidden, they 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 reveal potential actions you can take to better your financial future.

We can help you gain control of your finances and live better...for less.

Subscribe to Financial Independence, our daily email newsletter. It doesn't cost anything. And, it could make a huge difference in the way you live! Subscribers get Are You Heading for Debt Trouble? A Simple Checklist and What You Can Do About It for FREE!

Your Email:

We can help you gain control of your finances and live better...for less.

Subscribe to Financial Independence, our daily email newsletter. It doesn't cost anything. And, it could make a huge difference in the way you live!

Debt ChecklistSubscribers get Are You Heading for Debt Trouble? A Simple Checklist and What You Can Do About It for FREE!

Your Email:

The Conversation About Saving Money

“Saving money” is a common financial mantra, but it’s 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 difficult 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.

The Conversation About Owed Money

Debt is never a death sentence for anyone’s finances, even though it can feel like it at times. If you are in debt, the most important thing you can do is to 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?

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.

The Conversation About Money Left Behind

Matters of money 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 the process of your will.

Without a will, what happens to your most important assets is determined by the state. 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.

Reviewed April 2021

Let us help you achieve your financial goals.

Subscribe to Financial Independence, our daily email newsletter. It doesn't cost anything. And, it could make a huge difference in the way you live!

Debt ChecklistSubscribers get Are You Heading for Debt Trouble? A Simple Checklist and What You Can Do About It for FREE!

Your Email:

Follow Us

We can help you gain control of your finances and live better...for less.

Subscribe to Financial Independence, our daily email newsletter. It doesn't cost anything. And, it could make a huge difference in the way you live!

Debt ChecklistSubscribers get Are You Heading for Debt Trouble? A Simple Checklist and What You Can Do About It for FREE!

Your Email:

Pin It on Pinterest

Share This