We need to help people learn how to talk about their finances

Discussing personal finance and other money matters is often considered taboo. Whether it’s cultural norms, fear of judgement, or discomfort revealing financial details, the topic tends to elicit an adverse reaction — but it doesn’t have to. Normalizing conversations about money can help people, particularly young adults, gain the knowledge and tools to lead more financially empowered lives and potentially achieve financial freedom.

All of us across the financial services community, including bankers, have a responsibility to be a driver of change; sparking organic conversations about money and encouraging people to openly talk about their personal finance journey. That means putting financial knowledge and resources in the hands of people seeking information.

Each of us — credit bureaus, banks, credit unions, nonprofits — holds a different piece of the puzzle. Becoming a trusted source of information, and equipping people with the financial knowledge and tools to navigate their situations and subsequently share those resources with their friends and families, can jumpstart a movement to more open conversations about finance.

According to a recent Experian survey, more than half of respondents (51%) stated their family rarely or never spoke about finances. Furthermore, the lack of discussion left 43% of respondents feeling like they never learned about financial planning.

Interestingly, in a separate Experian survey, three in five adults felt their limited knowledge of credit and personal finance has led them to make financial mistakes, with 60% of the group stating these mistakes have cost them $1,000 or more. The trend was more apparent among Gen Zers and millennials, with 71% and 70%, respectively, feeling the effects from inadequate financial knowledge and preparation.

Conversation leads to interest, and interest leads to an appetite to learn more about any given subject. That includes personal finance.

Everyone’s personal finance journey is unique; however, transparent and honest communication with family, friends and other trusted sources can lessen some of the stress that individuals experience when it comes to managing finances. Creating a safe space for open dialogue is an opportunity to learn from people who may have undergone a similar situation or uncover financial tools and resources that may offer support.

While financial situations and goals may differ — some may be saving for a home, managing debt, building credit, or simply looking to improve their overall financial literacy — it’s incumbent upon us to understand the day-to-day challenges that people experience. By listening and learning, we’re able to proactively create materials that address some of the more significant pain points that people experience. Keep in mind, the most effective way to communicate with individuals is to meet them with the information they need, at the moment they need it the most.

For example, resources can take the shape of a series of personal finance workshops offered to local communities or brochures geared towards specific topics, such as homeownership or buying a car. Perhaps it’s as simple as developing a guide to discussing money at home. However, the tools and resources are delivered, engaging communities with age-appropriate information can be the catalyst for a thirst for financial knowledge.

While we’d like to directly connect with every consumer to share financial tools and resources, it’s not feasible. Some people are reluctant to engage with the financial services community and would rather be “taught” by their peers. That’s okay. Equipping people with financial knowledge and tools and encouraging them to share that information with others in their inner circle, creates a ripple effect that can lift up entire communities. If we’re able to share information with one individual, and they turn around and share that information with two others, it starts a chain reaction that leads to a more financially literate population.

Helping people feel more comfortable with their knowledge of the financial system is table stakes for each of us in the financial services community. We have to put the tools and resources in the hands of individuals and encourage them to share that information with family and friends. Normalizing conversations about money and personal finance is one of the first links in the chain that needs to empower individuals to be confident and realize their financial goals.