Americans Are Finally Opening Up About Their Financial Lives

Alongside religion and politics, money is often a topic avoided among family members. Whether it is to evade embarrassment or naivety, Americans have traditionally only revealed their financials to professionals. However, that trend is potentially moving in the other direction.

A recent Fidelity Investments survey revealed that attitudes about discussing monetary matters with family are changing. While 56% of the respondents said they never talked about money with their parents when they were young, 81% of them regret not broaching the topic. Now, as adults, the majority feel receiving financial knowledge at a younger age would have made a positive difference.

“Money and wealth is one of the topics that, notoriously, we just don’t like to talk about historically,” said Fidelity Investments’ David Peterson, per FOX Business. “Wealth is like a deeply personal experience, so in some respects, it’s not surprising that people have historically been uncomfortable talking about it.”

Among the State of Wealth Mobility study participants, 83% believe talking to children about financial matters is crucial. Roughly two-thirds of parents are currently doing so.

Why Should You Discuss Financial Matters?

Discussing financial matters becomes especially critical for aging family members, who are more likely uncomfortable with the topic. Often, older Americans build wealth on their own, so many don’t think discussing financial planning with other family members is even necessary. Yet, avoiding the topic can create challenging issues later.

“When people start reaching end of life, and they suddenly can’t manage their own finances or they no longer have the capacity to make decisions around it, this is where you start to see things kind of go sideways a little bit, because they haven’t shared with their families what their wealth is, where the wealth is, what it’s made of,” Peterson said.

Fidelity’s study also noted that most Americans, almost 90%, do not feel wealthy regardless of income and assets. Additionally, many fear financial insecurity, which only further discourages opening up about money.

In another survey conducted by Edelman Financial Engines, 58% of Americans believe it takes an annual income of $100,000 to live comfortably. According to respondents, anxiety caused by high-interest debt and increased living expenses could only be relieved with a six-figure level of income.

However, being open about financial situations may relieve some anxiety. Fidelity found that 78% of Americans with a clear financial strategy are more confident discussing money matters, which includes forming a game plan for building and preserving wealth.