Our article this week comes from the Wall Street Journal and discusses Americans reluctance to talk about money.
Regards,
Sam
The Money Conversation Americans Need to Have
By CAROLYN T. GEER
For All Their Worry About It, Few Broach the Topic
Americans are so reluctant to talk about money that even "the quiet company" is urging us to start yakking.
A recent study by Northwestern Mutual Life Insurance, which long marketed itself as "the quiet company," concluded that Americans would rather talk about sex than about money.
This follows a survey by Wells Fargo in which investors ranked personal finance a thornier topic than either religion or politics, and a T. Rowe Price Group survey in which nearly three-quarters of parents admitted to having some reluctance to discussing financial topics with their children.
Not that money isn't on lots of minds. Those surveyed by Northwestern Mutual rated personal finance a top priority (second only to personal health), and the majority felt their financial planning could use improvement. Yet fully 42% have never spoken to anyone about their retirement, and only 39% have spoken with their spouse or partner about the subject. "That really blew us away," says Greg Oberland, president of Northwestern Mutual, who was struck by the "significant gap" between investors' professed desire to take responsibility for their finances and their tendency to shun money-related conversations.
Step 1: Worry
Mostly we worry about money. A lot. Money has ranked as Americans' No. 1 source of stress for six years running in an annual survey by the American Psychological Association. (It tied or virtually tied with work in 2006 and 2007, the first two years the survey was conducted.) One-third of those polled by Wells Fargo said they've actually lost sleep over money, and a third of respondents in a survey by GOBankingRates said they worry about money "all the time."
The biggest reported obstacles to improving our financial health: lack of time (according to the Northwestern Mutual study) and lack of knowledge (according to the Wells Fargo survey.) So it seems we don't have time to talk about finances even if we wanted to, and we wouldn't know where to begin anyway.
Complicating matters: In polite conversation, money remains taboo. "It's still considered a private and personal topic," says Lizzie Post, a co-author of "The Etiquette Advantage in Business, Third Edition," and great-great-granddaughter of Emily Post. People avoid the subject "either because they're uncomfortable talking about it or they're not sure their friends or family are comfortable talking about it," she says.
That doesn't mean it's off limits, she adds. "It's OK to broach the subject with someone you think manages their money really well and say, 'I'd really like to get your opinion on this.' That's the way to invite a conversation and give the person an out."
Mr. Oberland suggests a similar approach for those who'd prefer professional help but don't know where to turn: Ferret out a referral. "Ask somebody you trust, 'Hey, you seem to be doing OK. Do you work with anybody?' " he says.
Spouses are challenged to find time to talk money with each other, Mr. Oberland admits. "It's not something you're going to sit down at 9 o'clock at night after a long day and discuss," he says.
Try scheduling a mutually convenient time when you're both likely to be in the right frame of mind, says Syble Solomon, author of "Bringing Money into the Conversation," a guide for therapists working with clients with money issues, and creator of "Money Habitudes," a card game designed to get people comfortable talking about money.
"Start simple," adds Mr. Oberland. Tackle basics like saving and budgeting before addressing more complex topics like asset allocation.
Lessons by Stealth With your children, you needn't have formal, sit-down talks about money, says Judith Ward, a senior financial planner at T. Rowe Price. Better to embed mini lessons throughout the week, for example, when shopping at the supermarket or planning for the weekend. T. Rowe Price lists a dozen such "teachable moments" at MoneyConfidentKids.com (click "Parents" on the home page).
Kids whose parents frequently talk to them about finances are more likely to feel smart about money and to identify themselves as savers rather than spenders, the T. Rowe Price study found. And presumably, more likely to feel comfortable talking money as adults
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