Making personal finance taboo is a boo-boo, says analyst

PHILADELPHIA (KYW Newsradio) — While many people speak freely about how they are affected by things like housing costs and the price of groceries, new research suggests Americans are not so open to discussing personal finances with friends and family. But an economist says the topic should not be off limits.

“We found that Americans are not good at talking about money, unfortunately,” said Ted Rossman, a senior industry analyst at Bankrate.

The research suggests the most taboo topic to talk about with loved ones is money, he says. Fully 62% of Americans said in a recent survey they are uncomfortable talking about banking and credit card topics.

Americans would rather talk to close friends and family about sensitive topics like their weight — even details of their love lives, Rossman said.

“Believe it or not, money topics are even more taboo than potentially sensitive things like your health, your politics, your religion — things like that.”

Rossman says there seems to be a generational divide, as well. The survey shows younger adults are more likely to talk about their finances than older generations.

“Now maybe it’s starting to change, because we did find that young adults are more likely to be comfortable talking about money matters than older people,” he said. “There’s actually a big jump — especially with Gen Zers and Millennials versus Gen Xers and Boomers.”

Rossman says he suspects some of that might be because younger adults are accustomed to sharing everything on social media.

“One aspect now that young adults are especially likely to talk about is their salary. And there has been a big push for salary transparency in recent years.”

Rossman says American should break the stigma associated with talking about money — even if it is uncomfortable — particularly as spending ramps up for the holidays.

“My advice would be — especially with the people closest to us, like your spouse or partner — it’s definitely important to give these money topics out in the open and not to keep secrets.”