Taking about money can make you healthy, wealthy and wise, according to new research.
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Your health is improved by talking to family and friends about money matters because having a chat eases stress about finances.
Wealth is improved because talking about money helps people consider new ideas about how to save and invest that improve their financial status.
And , of course, it’s wise to have a plan to manage your finances that boosts your emotional wellbeing at the same time.
Bottling up money issues can have a detrimental impact on mental wellbeing, according to the Money and Mental Health Policy Institute, which took part in the research with Phoenix Group, Europe’s largest life and pensions consolidator.
Psychologist Donna Dawson says: “Money problems have always been more of an emotional issue than a numerical one; this is because the way we handle money is intimately tied up with our self-esteem and self-image, as well as feelings of pride, guilt, shame and anxiety.
“Keeping negative emotions inside ourselves will eventually take a toll on our physical and mental health.”
The research found one in three people generally chat about money and a fifth do so to help their children learn how to tackle financial issues.
But a hard core 37% refuse to discuss money with anyone.
They say it is too boring (13%), feel it is inappropriate (16%) or awkward (11%) and a large portion of them claim their finances are private (31%) and have nothing to do with their family or friends. This sentiment that money is private and not to be discussed is particularly true amongst over 55s (39%), while just one in four (26%) 35-54 year olds hold this view.
David Woollett, head of customer strategy and oversight for Phoenix, said: “Engaging with your finances is critical, but we know that some people simply don’t talk about their plans. Sadly our policy tracing work has shown that many people have passed away without their beneficiaries even knowing where their financial policies are.
“Since September 2016 we have repatriated almost £13 million of lost policies through our proactive campaign to ensure policyholders, or their estates, do not lose out. It’s evident that talking with family and friends about financial plans can help avoid unnecessary financial anxiety and stress for those who are left behind.”
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