As a people, we talk about what’s on television, our jobs, even fears, but when it comes to productive money discussions, we sometimes cannot seem to find the words. Money should not be an elephant in the room. How do we change this culture? It comes down to understanding what money is.
Money by definition is a current medium of exchange in the form of coins and banknotes according to Merriam-Webster Dictionary. It should not be a synonym for words like power, character or social status, because some of the wealthiest people are unkind and lonesome, and some poor people are rich in character.
The National Financial Educators Council conducted a study in 2017 which concluded that individuals ages 18 to 24 scored from 60 to 68 percent financially literate. Today, the average person starts working by 16 years old, creating an automatic economic gap. Attacking money topics earlier lays a firm foundation of financial awareness, allows for earlier investments rearing quicker returns and closes the ethnic-economical gap to lessen poverty.
Creating the Atmosphere
Here are five tips on how to begin the conversation around money.
Understand the “why” behind the conversation. It is important both parties see value in the conversation. Having this understanding creates an open atmosphere for conversing, and is more likely to be a productive exchange of information.
Consider your relationship with the other party. Identifying your position in a person’s life will help you determine how intimate the money conversation should be.
Choose words wisely. The way questions are phrased may stagger the productivity of the money conversation. Open-ended questions are always best. This simply means asking questions that require more than a yes or no answer.
Do not go into the conversation with expectations. When an individual has expectations it naturally steers the conversation. When a desired response isn’t given, the tone of the conversation may change and even bring it to an abrupt stop.
Identify a positive stopping point. Everything does not have to be discussed in one conversation. Tiny triumphs yield greater returns sometimes. Pay attention to each other’s body language and tone to notice if either party becomes uncomfortable at some point in the conversation.
Implementing these five easy steps into conversations about money aides in promoting healthy money talks. From here continue the cycle. As opportunities present themselves think through these steps and dive into the next conversation. Do not be afraid to revisit topics that require clarity. This will eventually become second nature and you will tackle more intense financial topics with ease.
Laying a solid foundation around financial literacy, from a strategic position, is the first step to changing your money mindset. Money mindset is the thoughts, feelings and biases one holds towards money based on his or her prior experiences. It is important to acknowledge positive and negative money experiences. It is a part of the learning curve, but that does not mean it is the final destination to your journey with money. Change your mindset. Your actions will follow and eventually your relationship with money will change.
Do you have conversations about money with your peers, family, colleagues, etc.? How are they initiated? What are the results? Leave your comments below.
For more information on how to become become financially fit, visit the link below for a list of local money workshops. Capital One Cafes are offering free financial information to West Palm Beach County and surrounding areas. Simply go to www.capitalone.com/local and enter your zip code for a listing of all upcoming events or stop in to speak with an Ambassador. Don't forget to RSVP!
Latest posts by Chelsy Mone't (see all)
- Money Talks, Why Don’t We? Initiating The Black Money Conversation - January 14, 2018