Over half of Americans aren’t talking about money. Their silence may come with problems down the line, finds Empower in their latest research.
According to Empower’s “Money Talks” study, while 66% of Americans believe open conversations about money are key to financial freedom, 62% keep their lips shut when it comes to talking about their finances. The silence extends to family (63%), friends (75%), and even with their spouse or partner (46%).
In fact, people said they would rather discuss politics (43%) or death (32%) rather than have a conversation about finances (24%).
Yet, experts say that conversations surrounding money and finances can lead to better communication and engagement among participants—even if it is just with family and friends.
“It’s clear that ‘money talks’ matter. When it comes to retirement savers, we’ve seen that more engaged participants have higher savings rates,” said Carol Waddell, president of Empower Personal Wealth, in a statement. “Conversation is a currency on the pathway to financial security, and open discussions about money can have a truly transformative effect on society. Our study shows people believe that clarity about their financial picture, talking to an advisor and financial education are key to achieving financial success – and that’s exactly what Empower is here to help deliver.”
When asked for their reasoning behind the silence, 52% of respondents said they never talked about finances growing up, while one in four said they grew up with the belief that discussions around money were impolite. Another 35% added that they were taught to never ask someone how much money they make. Respondents also reported being raised without practical, critical money lessons like budgeting (32%), saving for retirement (21%), negotiating a salary (18%), or investing (17%).
The news wasn’t all bleak, however. A majority of respondents noted the impact open conversations on money can have to one’s financial wellness. According to Empower, 66% of survey respondents remark that open conversations can help people build generational wealth, improve the gender wage gap (62%) and over half say that money conversations could improve workplace transparency (56%).
Additionally, respondents to the study showed an interest in financial wellness communications. According to Empower, respondents want meaningful exchanges on ways to save for the future (41%), money mistakes they’ve made (36%), basic financial literacy (34%), and even emotional aspects of money (20%).
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
