Money and family: talking about finances with your loved ones

Money and family: talking about finances with your loved ones

Some partners share with us their stories of family and friends not supporting them and trying to dissuade them from participating in the project. However, those partners supported by family and friends consider this fact to be motivating for their development.

Does the support of loved ones matter in an individual's personal financial decisions? How much does it affect the outcome? Should one talk to their family about the project at all? To figure it out, we turned to the recommendations given by psychologists.

• Not an easy conversation. It's best to keep this in mind beforehand: talking about money is difficult. Personal income and expenditures constitute a rather intimate area of an adult individual's life, and questions about them require at least some sensitivity. Otherwise, neither you nor anyone else will want to share their plans and difficulties with you. Every country reports statistics that show roughly the same picture: differences in financial habits are one of the main causes of family conflicts. So brace yourself right away: your loved one's reaction to your financial plan can be unpredictable.
• Financial socialization. An adult's financial behavior is influenced by memories of how their parents handled money and how the family taught their children to allocate their resources. Did you and your family or friends go through roughly the same financial socialization? Then your financial decision is more likely to be supported.
• Finances and gender. According to surveys, 75% of men believe they are better financially savvy than women, including their wives. To avoid a conflict in talking about money, it is more productive to set yourself up with the idea that anyone can give you good financial advice, regardless of their gender.
• Financial goals. If you know at least approximately what the person's financial goals are, you can use this as a unifying factor in the conversation. "I want what you want, so..."
• Financial ultimatum. Have you said yourself or been told the following by family or friends as an ultimatum: we buy/don't buy this? The wording and reasons could be different, the main thing is that you don't ask or are not asked for an opinion. The first rule of talking about money is breached: sensitivity. It is less likely that your financial decision will be supported.
• To share or not to share? It's up to you. In any case, you should not make a secret of your financial decisions, for example, when participating in a project or partner program. Honesty in financial matters (and not only) is important between loved ones. If you are asked, it is better to tell the truth. But you have the right not to start talking about your financial decisions at all with those who do not depend on you financially. And vice versa - in case of financial dependence of your loved ones, it is fair to inform them about your decision.
• I was not supported. What should you do? Nothing. Take responsibility - and announce it. Then continue pursuing your goal. Family and friends most likely wish you well, which means they are sure to be pleased with your achievements!

Read about how friends and family most often react to our partners' participation in the project in the stories available in the back office.