This article is for educational purposes only and does not constitute financial advice.
There’s been progress in opening up the conversation about money in the mainstream, yet talking about financial struggles still feels off-limits for many people. In fact, money is a taboo topic for almost 1 in 4 Canadians. If you’ve grown up in an environment where the topic of money was shrouded in secrecy, changing your approach can be a challenge.
Talking about money can be hugely empowering, so if you’re in need of convincing, here are five ways that it could boost your financial well-being in the long term.
Break down assumptions
Money is inescapable in our everyday lives, so it’s natural that we make all sorts of assumptions and judgments about things based simply on what we can see, rather than what we know. It’s very easy to jump to conclusions about other people’s financial situations, which can lead to resentment, jealousy, and even feelings of inferiority. By opening the conversation about money, you can tackle those thoughts and replace any negative assumptions with facts, as well as gain an understanding that everyone faces their own financial challenges at different times, and in different ways.
Money is one of the major causes of relationship breakdown, so there are plenty of reasons to talk about the subject if you’re looking for a long-lasting romance. It might be uncomfortable, especially if you and your partner come from different backgrounds or have contrasting beliefs about money, but clear communication can help you take on the conversation. Regular discussions about money with your partner can boost not only your financial well-being but your relationship, too, and make sure you’re both on the same page when it comes to joint financial expenditure.
Here are a few ways to start a conversation about finances with your partner.
Navigate financial difficulties
If you’re in a difficult financial situation and trying to handle debt alone, it can put a huge strain on your mental health and make it hard to see the light at the end of the tunnel. Talking about your financial situation with someone you trust – whether that’s a friend, colleague, or debt counsellor – is the first step towards figuring out a plan of action. Having support is invaluable, so don’t be afraid to ask for help.
Conversations about money in the workplace can be revealing and helpful, giving you insight into the opportunities available and helping you to understand what you need to do to reach the next salary bracket or pay grade. Awkwardness is often cited as a reason not to have these conversations, yet by staying quiet and avoiding the topic, you could be missing out on valuable information that may help progress your career. Talking to a trusted colleague or mentor about money can help you:
Amp up your salary negotiation skills
Align your compensation expectations with your professional ambitions
Understand how your compensation compares to others in similar roles within your organization or industry
Keep yourself motivated
Ambitious financial goals can put you under a lot of pressure. You might not be able to spend as much money on other things if you’re channelling significant amounts of money towards a specific goal. By talking about your goal and letting others know what you’re working towards, you can get a much-needed motivation boost from friends and family when you need it. These discussions can also help them understand why you may not have as much money to channel towards other activities, or why you may be setting yourself a stricter budget than usual when it comes to socializing or group activities.
Talk to a professional
Consulting a financial counsellor comes with several advantages. These professionals offer personalized guidance to help you effectively manage your finances. They can assist with creating a budget, reducing debt, and planning for your financial future. Their expertise improves financial literacy, reduces stress, and enhances decision-making. In times of financial crises like unexpected medical expenses or job loss, they provide support as well. Advice from a financial counsellor boosts financial stability, enhances money management skills, and gives you a sense of control over your financial well-being.
So, why not consider reaching out to a financial counsellor today?
*Disclaimer: The information contained in this document is provided for informational purposes only, and should not be construed as legal or financial advice on any subject matter. You should not act on the basis of any content included in this document without seeking legal, financial or other professional advice. The contents of this document contain general information and may not reflect or address your situation. We disclaim all liability for actions you take or fail to take based on any content on this document.*