Talk money to me…

By Jessica Sena

This week is ‘Talk Money Week’, an initiative from the Money and Pensions Service that aims to encourage people to open up more about their finances. As someone who works within the finance industry I ‘talk money’ everyday with my colleagues and clients, but there is definitely stigma for some people when it comes to talking money with their friends and family.  I think this needs to change.

It has been a turbulent year and many people are finding themselves in financial situations they have never been in before. This disruption to people’s finances, whether it be job losses or salary cuts, has shown the need more than ever for a financial plan. Talking to your loved ones about your plans for the future, or any financial troubles you may be having, can help in many ways, and it shouldn’t feel like an uncomfortable or taboo subject. There is no need to disclose specific numbers, a simple chat over a cuppa with a trusted loved one can result in some useful advice!

Women are known for loving a good chat and as a young woman in my 20s, the conversation topics on my group chats vary hugely, whether it be talking about our career aspirations or Netflix recommendations. But it’s women who really need to start talking more about their finances. Women are more likely to work part-time as they grow older and start families, and this can often leave them much worse-off financially, as they end up saving less for their future.

According to new research from Scottish Widows[i], the gender pensions gap has actually been closing (finally!) and women have started to save just as adequately as men for their retirement. However, the same study found that women are still saving on average £1,300 less than men each year. Lower wages and not saving as much in the past, means women are still left poorer and would need to work beyond the age of 100 to rack up a pension pot as high as their male counterparts! I think I speak for most women when I say I love my job, but I don’t plan on doing it for that long…

So ladies, when I say talk money, I’m looking at you! You don’t need to disclose salaries and bonuses to have a conversation with your friends about money. If your friend tells you she wants to start saving for a house, tell her about the Lifetime ISA you’re investing in and how the government bonus works. If another friend has some spare cash that she’s been putting into a savings account each month, tell her the benefits of a stocks and shares ISA and what compound interest is.

It’s not just the adults that can benefit from open discussions on money... Is a loved one starting a family? Tell them the benefits of a Junior ISA and how little they need to open one up. Sharing these little bits of knowledge with each other can mean everyone ends up better off. You don’t need to be giving official financial advice to help someone.

It really is that simple, so let’s get talking!

[i] https://adviser.scottishwidows.co.uk/assets/literature/docs/2020-women-retirement-report.pdf