Thursday, October 29, 2009

Using the "F" Word in Public

No I'm not talking about the word %$#^! Swearing in public is just a way of exemplifying ignorance. I'm talking about discussing our "Finances" with others.

Traditionally we were taught not talk about our finances. The reason was probably because people felt insecure about how much they earned in compared to others. In the old days, it was also inappropriate for women to show their ankles in public. Now that its the 21st century, we need to encourage change. Not talking about money over the years is probably the reason why so many people have problems managing it.

I'm not encouraging you shout out your annual salary in a crowded subway, I am merely advocating the communication between friends and family for money management advice. Discussing dollar amounts, or salary levels, is irrelevant and may make others feel uncomfortable. Instead focus on learning techniques for better money management. Some good topics could be:
  • Asking a homeowner how to buy a house?
  • Ask a retiree how you should save for retirement?
  • See if any of your friends make a formal budget?
  • Does anyone balance a check book, or use personal finance software?
  • Who makes a shopping list before getting groceries?
  • Ask your parents if they auto pay their bills?
  • What investment strategies have worked for people you know?
  • How accounts are structure for money managing couples?
  • Bill payment responsibilities, who pays what?
  • How to responsibly manage credit card usage?

The idea is not to interrogate the people in your life, but to learn from their experiences and to share ideas about how to improve your financial health. Sharing ideas will benefit everyone.

1 comment:

Jon Griffith said...

My conclusion to the reason people are so tight about revealing their financial position is because you can know almost everything about someone by looking at their spending habits, and lots of people are doing things they don't want to be known by others.