Many people avoid talking about money due to feelings of shame, embarrassment, and anxiety. Peer-based approaches and supportive environments can encourage conversations. Conversations should be timely, involve someone trustworthy, and lead to actionable outcomes for improving financial wellbeing. Starting conversations about money at a young age and identifying key “moments that matter” can help prevent financial crises.
‘Money’ is a daily concern for 16% of UK adults, and almost half of all UK adults (48%) regularly worry about their finances.1 It is also a secretive topic for many, with two in five concealing a financial product from a loved one.2 Additionally, half of UK adults believe that the subject of money should be entirely off-limits at work.
Research shows that people in debt feel better after opening up to others.4
This review brings together evidence on how we can support people to have better conversations about their money, it looks at: 1) why people don’t talk about money; 2) which groups are talking less about money; 3) what a ‘good’ conversation about money looks like; and 4) what works well in encouraging people to talk about money.
Talking about money is difficult for many people. Research shows that individuals avoid discussing money due to feelings of shame, embarrassment, stress, and anxiety.5 Other common reasons for avoiding money conversations include not wanting to burden others and feeling like they should be more successful than they are.6 For those in debt, these feelings are amplified.7
In certain situations, individuals might believe that it’s not safe to engage in money conversations due to their personal circumstances. For example, they might be in high rent arrears and fear that individuals may have power to evict them, making them particularly suspicious, fearful and anxious of these conversations when they are financially vulnerable.8
According to evidence, age, gender, living with children, educational status, region, and income are all factors which might be associated with a person’s reluctance or willingness to discuss money.
Some evidence shows people with a stronger internal locus of control are more inclined to talk about money.14
The Centre for Business in Society at Coventry University have used the following definition as to what a good conversation looks like:
“A good financial conversation is timely; involves someone I trust, who respects my privacy; takes place in a manner, location and through a channel of my choosing; leads to robust advice and actionable outcomes appropriate to my situation; that help improve my financial wellbeing.”
It is important to note that whilst conversations about money are typically beneficial, they can also trigger concern or emotional reactions, highlighting the need to have processes in place for wider support and safeguarding if required.15
Past programmes and interventions have shown some common themes which help us understand what works in encouraging people to talk about money.
Peer-based approaches: These can be effective across multiple different contexts and settings. In youth settings, peer educators are effective in building rapport, relationships and changing mindsets. They provide an authentic and relatable voice.
Other evidence shows that getting people to talk about money in an open and honest way is more likely in one-to-one exchanges.18
Environment and timing: the environment can also be important as this may be related to a particular ‘moment that matters’ in an individual’s life.19 This can include ‘Moments that matter’ or ‘teachable moments’: evidence around debt and credit points towards a trend that people are accessing advice and support far too late and once they are in crisis, this suggests vital ‘moments that matter’ are being missed.20 These might be a change in someone’s life in relation to health, employment or relationships.21
At a young age: is one of the best times for money conversations to take place and begin to be normalised. Financial capability is in large part a consequence of what is seen, learned and experienced during childhood and adolescence.22
Tailoring: intervention programmes tend to do better when they are uniquely tailored to each group, as individuals face specific and different challenges within money management support and advice.26 Programmes involving signposting, supported self-referrals and financial capability mentoring have had good success in improving the confidence of individuals ability to talk about money issues. 27
The workplace: One potential avenue of enabling money conversation is via the workplace.
Did you find this review helpful? We would like to know what you think. Please contact us at [email protected] with your feedback, and any suggestions for further research or evaluation that should be included in future updates.
Elements of this thematic review were produced in collaboration with the Centre for Business in Society at Coventry University.
The Money and Pensions Service, Shame, upbringing and burdening others: why 29 million UK adults don’t feel comfortable talking about money despite feeling worried about it, November 2020
The Money and Pensions Service, 21 million money S£CR£TS kept from loved ones across the UK, November 2020
The Centre for Social Justice, Swimming with Sharks: Tackling illegal money lending in England, March 2022
Lowell, Hidden Debt – why we don’t talk about our debt problems, March 2021
Brunel University and A2Dominion, What works? Evaluation of the DOSH financial capability programme, October 2018
Coventry University and The Money and Pensions Service, Helping those who use credit to make ends meet, July 2022
National Body for Youth Work, Evaluation of My Money Now Delivered by the National Youth Agency, March 2018
Age UK, The Age UK ‘Your Money MOT’ impact evaluation, May 2018
Move On, Move on Schools Financial Capability Workshops: Evaluation Report, June 2018
Auriga Services Ltd, Financial Capability of patients attending NHS units for Renal Services and Inherited Metabolic Disorders, April 2018
The Money Advice Service, Evidence from our What Works Fund to improve the nation’s financial capability, October 2018
The Money and Pensions Service, UK Children and Young People’s Survey Financial Education in Schools, December 2019
The Money and Pensions Service, Submission by the Money and Pensions Service to the All Party Parliamentary Group on Financial Education inquiry into the provision of primary financial education, June 2021
Managing Chang£, What Works Project 244b, April 2018
CIPD, Financial Wellbeing, November 2021
The Money and Pensions Service, Financial First Aider Pilot, February 2022
