This 4-8 November marks Talk Money Week, encouraging Brits to open up about everything from pocket money to pensions. This year’s theme is “Do one thing”, but at Fingerprint Financial Planning we can go four better than that.
Here are five important areas where frank financial discussions could make a huge difference – to you and your loved ones.
1. Teaching children the value of money
Money is generally a taboo subject in the UK, but the issue could be a generational one. Recent Royal London research suggests while just 43% of over-65s spoke to their parents about money growing up, this figure jumps to 75% for 18-24-year-olds.
We’re getting better at talking then, which can only be a good thing.
Attitudes to money are formed early in childhood, possibly from seven onwards. Growing up in a household where honest and open money discussions are the norm will help children to have a positive money attitude in later life.
You might begin by speaking to your children or grandchildren about:
- The value of money and the fact that it must be earned, possibly through chores in exchange for pocket money.
- Financial independence and saving versus spending. Delaying gratification through careful budgeting could help your child buy the expensive toy they crave.
- Opening a bank account and concepts like interest, helping to provide their first lesson in how money can grow.
Understanding as a child that you can’t afford everything you want, but that saving can help to achieve your goal, is an incredibly worthwhile lesson.
From there you can move onto more grown-up money issues, like saving versus investing, maybe through opening a pension or Junior ISA on their behalf.
2. Maximising your workplace pension
An Aviva report back in October 2023 looked at what it called “triple defaulters” – those pension savers who had:
- Never updated their pension contribution amounts
- Kept the same target retirement age since inception
- Always been in their scheme’s default pension fund.
If your workplace pension is just a line on your payslip, make this year’s Talk Money Week the spark you need to re-engage with your retirement savings.
Speak to your employer about the type of scheme you have, your current contribution level, and fund choice. You might find that your employer will agree to match any contribution increase you make, or that there are funds available that better align with your values on sustainability issues.
You might even discuss salary sacrifice, or “salary exchange”, which could see your take-home pay rise, even as your pension contributions increase.
3. Debt management and reducing financial stress
Virgin Money reported back in summer 2024 that almost half (44%) of Brits feel uncomfortable talking to friends about money. Interestingly, though, the outlook is improving, with 38% suggesting they find it easier now than they did five years ago.
Talking about money is especially important when it comes to debt. Accruing debt can have a huge effect on your physical and emotional wellbeing and harm relationships with the people you love, usually starting with those closest to you.
Financial advice can help you to prioritise, maybe by paying off high-interest debt first or managing the balance between overpaying a mortgage and mitigating the impact of any early repayment charges.
Clearing debt can make it easier to meet day-to-day expenses, as well as leave you with more disposable income for the things you love and save for your future.
Keeping your debt problems a secret, and bottling up your money worries can have devastating consequences. Begin by speaking to your bank, building society or mortgage lender, but open up to friends and family too.
4. Will writing and estate planning
Back in 2022, MoneyAge reported that 57% of parents have never discussed their will with their adult children.
While these conversations can be difficult, the fallout can be incredibly tricky if your wishes are not understood. Will disputes are on the rise in the UK, but open and honest communication could relieve stress and unpleasantness now, and after you’re gone.
5. Inheritance planning
Linked to your will is the wider issue of Inheritance Tax (IHT) mitigation and estate planning. Canada Life suggests that 5 million Brits who received an inheritance in the last five years didn’t discuss it with their benefactor beforehand.
This makes planning for that sudden windfall all but impossible.
Especially worrying is that, according to Actuarial Post, 20% of Brits are currently delaying major life plans until they receive an inheritance.
With the so-called “great wealth transfer” well underway, and an estimated £7 trillion expected to pass between generations in the next 30 years, intergenerational planning is key.
Make this Talk Money Week the time you sit down with your family to discuss your will, estate planning, and legacy. It will help to ensure you’re all on the same page and avoid any potential disputes further down the line.
Get in touch
If you want to talk about any aspect of your money and finances, speak to us now. Get in touch by emailing hello@fingerprintfp.co.uk or calling 03452 100 100.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
