Awkward conversations. We've all been there. The silence that follows a misplaced joke, the cringe-worthy small talk, or the moment when you realize you've been talking to someone for ten minutes about a topic they couldn't care less about.

But for many people, having conversations about money can be the most awkward and uncomfortable moments to endure, even with close friends and family. The fear of being judged, the embarrassment of not having enough, or the worry of sounding materialistic are just a few of the reasons people avoid talking about money.

This makes it difficult for people to be open about their financial situation, even when they might need help or advice.

We’ve listed some tips to help you become more comfortable talking about money, enabling you to make better, more informed decisions, find ways to save money, avoid financial mistakes and achieve your financial goals.

Start with yourself

Take the time to understand your own attitudes and beliefs about money. Ask yourself why you feel uncomfortable talking about it and what you hope to achieve by being more open about your finances. If you set yourself a specific goal to focus on, it can make the process of having an honest conversation with someone else to help you get there a lot less daunting.

Find a safe space to talk about money

Choose someone you trust and who will not judge you for talking about your finances. That could be a close friend, a family member or even a financial advisor. Next, choose the right time and place in which to have the conversation. Bringing up financial topics in an inappropriate setting or when the other person is preoccupied could lead to misunderstandings or maybe even conflicts.

Try to find a time when both parties are relaxed and focused, and a place that’s conducive to having a calm and productive discussion. By being considerate of the other person's time and situation, you’re more likely to achieve a positive outcome from the conversation.

Be open about your financial goals or circumstances

Whether you’re discussing finances with a friend, a family member, or a work colleague, it’s important to clarify exactly why you’re bringing up the subject of money. This will ensure the person you’re talking to understands what your motives are, as well as the context to the conversation, and this should make them more understanding and empathetic, removing the awkwardness from the situation.

Focus on the facts

When it comes to talking about money, it can be easy for emotions to become the focus of the conversation, but allowing your feelings to get in the way is often counter-productive.

To ensure you stay focused on the facts, try taking a moment beforehand to reflect on your emotions. This can help you to identify any underlying feelings you may have about the subject, whether that’s fear, anxiety, anger or any other emotion that could cloud your judgement. Once you’ve identified how you feel about the situation, take a breath, and remind yourself of just the facts. By making a concerted effort to focus on those, you’ll be much more likely to stay calm and be able to navigate the conversation in a more rationale and productive way.

Whilst talking about our finances can be uncomfortable, by reframing the subject and adjusting our mindset it really doesn’t need to be. So, let's break the stigma around money talks and start having more open and honest conversations that will help us adopt smarter money habits, putting us on the road to achieving our financial goals.

How to talk to children about money

Having open and honest conversations about money is key to developing good financial habits for yourself. But it’s just as important to talk about money with the children in your life, to help them develop financial literacy and responsibility too. We’ve collected a few tips and approaches to help instil good money habits in children from their early years through to their teenage years.

Read our blog to find out more about having money conversations with children.