Families more likely to chat ‘birds and the bees’ than finances

Over three quarters of the UK population (77 per cent) regularly worry about their family’s finances, yet would much rather talk about sex than money management, according to research by secured loan provider Picture Financial.

Half of the population (50 per cent) report that credit is a good thing and an acceptable means of maintaining a standard of living when handled responsibly. Yet this isn’t reflected in our willingness to discuss our finances at home, with the research showing we are four times more likely to talk about sex with our family than we are about money. In fact, money was ranked fourth on our list of hot topics after sex, current affairs and religion.

Finances, not a family affair

This reluctance to discuss our finances appears to be clouding family life with two in five (38 per cent) families reporting to argue more regularly about money than relationships, other family members, work, TV or politics.

Donna Dawson, behavioural psychologist, comments on the research saying: “Despite being a nation of regular credit users, we tend to shroud our family finances in mystery when we really don’t need to and as a result this can lead to unnecessary tension. We shouldn’t feel so restricted when it comes to discussing our finances with our family, as a lack of communication can impact not only on family life but also on our ability to take proper financial stock.”

Julia Dallimore, Marketing Director of Picture Financial commented: “There is a sharp contrast in our willingness to talk about sex and current affairs compared with credit and borrowing. This reluctance to discuss our money can lead to head-in-the-sand approach to our finances. Being more open with our money management and taking regular time out to review and sort our finances can make all the difference to our financial health.”

Mind the (generation) gap

It is the younger generation who appear to worry most about credit, with three times the number of 16-24 year olds (19 per cent) admitting that credit was a constant source of worry than the over 55s (six per cent). Despite this concern, they are reluctant to talk through their worries with more experienced family members, with just seven per cent claiming to talk regularly about money with their family. Furthermore, the research highlights that fathers instil the greatest fear when it comes to talking bank balances, with two in five (43 per cent) 16-24 year olds voting dads as the family member they are most scared about opening up to.

Dallimore adds: “We know that the younger generation are some of the greatest users of credit, but our research shows that 16-24 year olds worry the most about money and are most likely to shy away from talking openly about it. With the older generation having more experience managing their finances, greater openness between the generations could take the fear-factor out of money management for younger people.”

The older generation appear to have a much more realistic attitude to money than their younger counterparts, with nearly half (48 per cent) of those aged 55 years or more stating that credit is a good thing when handled responsibly compared to just a third (34 per cent) of 25-34 year olds. The research also revealed that this age group were the least likely to lie about their finances, with 92 per cent claiming to have never lied about money.

Picture Financial is urging consumers to take time out to become better money managers, and advises consumers to look for independent advice to help explain any financial jargon they might not understand. A good place to start is through the Financial Services Authority: fsa.gov.uk but you can also get advice through Credit Action creditaction.org.uk or Citizens Advice citizensadvice.org.uk.