Money is an important topic for many reasons in all aspects of life, from relationships to future planning, life events, and family planning.
With that being said, money is also one of the most avoided topics in many circumstances. Wives avoid money topics with their husbands, parents avoid talking about money with their children, and friends rarely discuss money in any real context. So let’s talk about money and break the taboo that it has become.
In This Post:
Reasons Money Talk is Important
When people think about discussing money with anyone, especially someone they are close to, they get uncomfortable and often hesitate or avoid the subject altogether. Avoidance is not the answer. Money is a vital part of any relationship, whether friendship or marriage. When you are in a joint financial relationship, it may be hard to discuss money matters, but discussing them is an essential component to achieving success. So why is money so important? Following are some of the top reasons.
One of the most important reasons to discuss money is for budgetary purposes. Every household needs to have a budget to live by to make future plans possible. Without communication, this budget is impossible.
Adding communication to your budget means that all parties involved will understand where the money is going to and why. This understanding will give them a reason to save and adhere to the budget.
When you are making a budget for your household, you want to ensure that you cover the necessities (food, bills, gas, etc.), and then any emergency planning that you will be including. Discussing all of these financial needs during the budget planning will put everyone on the same page and facilitate the adherence portion of the budget.
Savings is a financial goal in every household. You want to have money put back for a rainy day or that family vacation you have been put off for years. Your savings plan needs to be included in your weekly or monthly budget. This inclusion will ensure that you are saving what you need to meet your goals.
So how much should you be saving? First, you will need to discuss what you are saving for and how long you will be saving to achieve it. Ideas for savings are retirement accounts, vacation savings, emergency funds, and college tuition.
Now that you know what you are saving for, you will need to decide how much you can rationally put towards that goal each pay period. Make sure that this goal is reasonable and does not leave you feeling strapped for funds throughout the month. Then ensure you add this amount to your budget.
Emergencies are one of the most stressful times in a relationship. This is also the time that communication is essential, especially if you do not have enough saved yet to cover this emergency. You will need to discuss your options and decide as a team what your best course of action is.
Some of the most common resources during emergencies are loans and selling of personal items. Loans can be achieved in many ways, which include personal loans, family/friend loans, or car title loans. You may also have options to refinance or consolidate loans that you already have to help you achieve the amount you need.
If refinancing is an option, there are several avenues depending on your current loans. You may be able to apply for a debt consolidation loan that will free up extra funds each month. Other options may include refinancing a car loan you already have to lower interest rates or possibly applying for a larger sum through the loan process.
Learning to Use Communication to Achieve Financial Goals
The essential part of achieving any of the above financial goals is going to be communication. Keeping everyone on the same financial page is much easier when they understand their role in the plan and the purpose for succeeding.