Why talk about money
Talking about money isn’t always easy and there are many reasons why we avoid this conversation - we might think it’s rude, we don’t think we know enough about the subject, we don’t want to be judged, or maybe we don’t want to worry others.
But talking through your finances can help you make better decisions, feel more confident and improve your financial health. Stress about finances impacts many of us. In fact, our research shows that over 80% of UK workers have some level of stress about their financial situation¹.
Being open with your partner
If you are part of a couple, it is especially important to be open with your partner about money. Understanding each other’s position and aspirations may help you work more effectively towards your financial goals now and in the future.
If there are issues you are worried about, talking openly could be the best way to tackle these. Take your credit history for example, when it comes to your own credit, any credit rating you’ve each built up on your own will still stand for individual bank accounts, credit cards and personal loans. But if you have any joint accounts or applications, your individual credit histories quickly become important to both of you and an integral part of your financial health.
Understand your starting points
A good place to start these conversations is by getting a picture of your overall financial health. Check your Fidelity Financial Wellness Score to see how how you are performing across four key areas - budgeting, debt, savings and protection - and get tailored tips for how you can improve your overall financial fitness.
It’s also a good idea to have a clear idea of your short and long-term goals. Maybe you are building up your contingency fund or saving for exciting events like a wedding, a new home or even early retirement. A long-term goal like retirement, might seem like a long way off but talking about your pension now can make a big difference to your financial future. Our Retirement Savings Guidelines can help you understand more about, and develop your own ideas on, how to manage your retirement journey. Whatever it is you are working towards, knowing how to get there is key to helping make it a reality.
Getting help on debt
With the ready availability of credit, most of us have debt. Our global Financial Wellness survey recently found that 79% of respondents in the United Kingdom had some form of debt². Knowing what we owe is an important part of understanding our financial fitness. If you are worried about debt or facing financial problems, there are several organisations that can help:
Citizens Advice is a good starting point and you can find your nearest CAB at www.citizensadvice.org.uk.
The National Debt Line offers free, impartial debt advice to people across the UK. Whether you are in England, Scotland, Wales or Northern Ireland you can get appropriate advice on how to tackle your debts and financial worries at www.nationaldebtline.org.
StepChange is a free debt counselling service. You can get tailored advice on tackling your debts from expert debt counsellors at www.stepchange.org.
Want to understand more about conversations you can have today? Listen to our Talk Money podcast to hear our experts discuss how talking about money can boost your mental and physical health.
1 Fidelity Global Financial Wellness Survey, 2020
2 Fidelity Global Financial Wellness Survey, 2020
The value of investments and the income from them can go down as well as up, so you may not get back what you invest. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action. You should regularly review your investment objectives and choices and if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser.