Why talking money is good for your health

By Rosemary Bigmore

‘Talk Money, Talk Pensions Week’ is the ideal time to discuss money worries, which research shows can help improve your financial well-being.

More than three-quarters of employees in the UK claim money worries affect them at work, according to a 2019 study by Close Brothers Asset Management1. That statistic suggests there is some truth that paying attention to your financial health can also prove beneficial for your mental health.

‘Talk Money, Talk Pensions Week’ (18-22 November) is run by the Financial Capability Strategy for the UK, part of the Money and Pensions Service (MaPS), and aims to help people hold productive money conversations.

Research by MaPS shows 22 million people in the UK say they don’t know enough about money to plan for their retirement2. So if you want to know how to get started talking about money, the following tips can help.

  1. Feel the fear and do it anyway

The MaPS research says there is evidence interventions can have “a double generational impact – improving financial capability outcomes for both children and young people, and their parents”2. Accepting that it’s a big leap can be a start to having a good money conversation. Speaking with a qualified money expert, such as a financial adviser, could help you to break the taboo.

  1. Collect your thoughts (and paperwork)

Whether you want to talk to a partner, your parents, a financial expert or even your children, get your numbers in order. Know your budget, pension arrangements, assets and debts, including your mortgage. But also think about your financial goals: what you want to achieve with your money and what a comfortable retirement might look like are two good questions to ask yourself.

  1. Set targets for your conversation

If you’re talking to elderly parents, you may want to discuss care costs, whereas with a spouse you may want to set annual, five- and 20-year savings goals. A financial adviser can help you take the emotional heat out of the conversation and recommend the best products to help you realise those goals.

  1. Make a future money date

If you have had a productive financial chat, commit to monitoring and discussing financial goals and challenges. With a financial  adviser this could be every year, but with a spouse or parents it may be more often. The most important thing is to keep talking because that will lead to money confidence.

To find out more about how we can help you achieve your financial goals, call 01732 617950

1 https://www.closebrothersam.com/for-employers/news-and-insights/25-million-uk-employees-affected-by-money-worries-while-at-work/ 2 https://moneyandpensionsservice.org.uk/wp-content/

It is important to take professional advice before making any decision relating to your personal finances. Information within this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.

Tax and Estate planning are not regulated by the Financial Conduct Authority

The value of pensions and investments can fall as well as rise. You may get back less than you invested.

Will writing is not regulated by the Financial Conduct Authority. 

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