Younger people are significantly more open about discussing financial matters than older generations, according to new research from the wealth manager Killik & Co.
62% of respondents aged 18-24 and 63% of those aged 35-44 reported that they feel open to discussing financial matters with their parents, with less than a fifth of the youngest group (19%) feeling private.
This compares starkly to those aged 55+, where only 25% of respondents feel open with a similar number (23%) feeling closed. 31% of the younger group reported feeling very open compared to 6% of the older group.
Killik & Co said the same feelings seem to ring true when it comes to discussing finances with your partner, with 64% of those aged 25-34 feeling open compared to 55% of 55+ year olds who feel the same.
HOUSEHOLD WEALTH
The research illustrates that household wealth is a key factor, with wealthier families being more open to discussing financial matters. 60% of households earning over £100,000 feel open to discussing it with a parent and 78% report feeling open to talking to their partner about the subject. This contrasts with the lowest earning group surveyed who make £15,001 – £25,000 a year, where 34% feel open talking to their parents and less than half (46%) with their partners.
Outside of the question of openness, the findings also reveal that there is a stark generational divide when it comes to the frequency of discussions. Half of individuals (51%) aged 18-34 discuss financial matters often with family compared to just a third (33%) of those aged 35 or above. 30% of 18-24 year olds admitted to talking about finances with their family at least once a month with just over one in ten (13%) of the older group feeling the same way.
Additionally, the research found that 13% of individuals aged 55+ believe that financial matters should be kept to oneself compared to less than 4% of those aged 18-24, displaying a generational difference in attitudes towards how money should be handled within the family.
“Money and the handling of one’s finances has long been a taboo subject in British society”
William Stevens, head of financial planning and partner at Killik & Co, said: “Money and the handling of one’s finances has long been a taboo subject in British society, with many opting to keep their cards close to their chest and only confide in loved ones when it is absolutely necessary.
“Sadly, our research shows this attitude is still prevalent – but encouragingly, the younger generation is championing healthier habits. This offers hope that in the future, when the young workers of today near retirement, the nation and its families will have adopted an altogether renewed mindset about the historically neglected subject.
“Discussing your financial situation with loved ones can not only provide much needed relief on what can often be a key stressor in life, but is crucially important for securing a wealthier future for your family.
“Open and honest discussion is critical when it comes to key life events such as planning a will and inheritance strategy. Establishing open channels of communication as early as possible, and maintaining them throughout your life, will make it all the more easier to approach such subjects when the time arises.”
