Do you think your friends are better off than you are?

Many people assume they’re financially worse off than their friends - despite having no evidence.

According to Aegon, seven in 10 (70%) adults avoid discussing money with their friends.

And nearly four in 10 (37%) don’t know how much their friends earn.

But despite that, a huge number are making sweeping assumptions.

For example, one in four (25%) believe their friends are on a higher salary than them.

And only one in ten (12%) think they earn more than their friends.

Silence affecting financial confidence

It’s clear that by not talking about money, many of us are automatically believing our friends are richer than we are.

“When money conversations are avoided, people tend to fill the gaps with assumptions,” said Dr Tom Mathar of Aegon.

“Many quietly assume others are better off, even when that simply isn’t the case.”

But that has a serious knock-on effect.

As Dr Mathar says: “People often steer clear of money discussions to avoid awkwardness or fear of judgment, but that silence can undermine confidence.”

Why we should talk about money more

Many people feel awkward talking about money, but there are many compelling reasons to be more open.

Better relationships

If you’re open about money with your friends, you can avoid misunderstandings and not be expected to do something that’s beyond your budget.

Honest conversations build trust and reduce the risk of conflict and awkwardness later on.

Better mental health

Money worries can feel overwhelming, but especially so if you keep them to yourself. 

But discussing your concerns can help you ease the burden and feel less alone.

Access to support sooner

If you feel comfortable talking about money, you’ll be more likely to seek help earlier than you would do otherwise, and hopefully stop problems spiralling into something much, much worse.

Whether it’s speaking to a professional or reaching out to a support service, early action can make a huge difference.

Staying accountable and motivated

Talking about your financial goals with others can give you strong motivation to succeed and make you willing to hold yourself accountable.

Better financial decisions

If you’re open about money, you can tap into the knowledge and experience of other people.

Whether it’s their successes or failures, this shared insight can help you make better choices concerning your finances.