Young people should talk about their financial goals

Many young adults don’t like to talk about money. But instead of concentrating on awkward subjects like what they earn, perhaps we could encourage more openness by talking about what they want to achieve.

Research by Skipton Building Society shows that nearly one in five (17%) Gen Z adults don’t feel confident talking about any aspect of money and finance.

And four in ten (40%) don’t want to reveal what they spend, earn or save with others.

But Skipton Building Society believes talking about goals, like buying a house or retiring by a certain age, would make people happier to engage with the topic.

Discussing goals avoids comparisons

“Conversations don’t need to start with how much you earn or have saved,” said head of savings Alex Sitaras.

“It may feel more comfortable to talk about your financial goals rather than comparing yourself to the stage where others are at now.

“It's important to create more opportunities for open, relatable conversations about finances and to help people build knowledge and confidence over time.”

Be honest and realistic

Mr Sitaras went on to note that people should live at their own pace, setting financial goals that are personal to them.

“It’s easy to get caught up in other people’s ambitions, as social media can sometimes create pressure to hit financial milestones by a certain age,” he commented.

“But progress looks different to everyone.”

Early money talks don’t have to be serious

Mr Sitaras went on to state that money conversations don’t always have to begin with a serious message or question. 

“Sometimes sharing an emoji in a group chat or a gif can help these types of conversations feel less intimidating,” he said.

He added that when talking about money can be a social taboo, anything that encourages people to start these conversations is a “positive step forward”.

Lack of knowledge may be affecting young adults

One reason why many young adults are uncomfortable talking about money might be the fact they’ve never been taught about it.

Recent research by Citizens Advice and Loqbox found that nearly two-thirds (64%) of 18 to 28-year-olds would like to have learned more about managing bills before moving out.

And that lack of knowledge might partly explain why a similar number (65%) believe money worries are harming their mental health.