Money Conversations Almost as Hard as Talking About Sex, Especially for Women: Survey
Talking about personal finances is tougher than talking about religion, politics, death, or sex for a majority of Americans, the Wells Fargo Money Study found. According to the study that polled 3,403 adults and 203 teens, more women find it difficult to talk about finances compared to men. Further, GenZ and young affluent Americans are the most reluctant to talk about their home prices. The respondents cited several reasons behind the reluctance which included the feeling of being judged.
Groups Who are Afraid of Talking About Money
According to the survey, a large majority of respondents, about 82% consider money to be a private topic. Amongst various aspects of finances, about two-thirds of the people said they are reluctant to talk about how much they save (65%) and how much they earn (62%).
The groups that were most reluctant to talk about how much they grew were Gen Z, at 41%, and young affluent Americans at 43%. The latter was the most reluctant to talk about how much their home is worth (48%).
The survey also revealed that half of women were reluctant to talk about money compared to 41% of men. Further about 35% of the women cited the fear of “feeling judged” as a top reason behind this.
Furthermore, women were more reluctant to talk than men in almost all of the money matters except for “how much they earn”. On the other hand, men were more open to talking about their savings, debt, specific investments, spending habits, and money mistakes, among others.
93% of women are stressed about money. Building a cash reserve can help, experts say https://t.co/AdtTAxsG91
— CNBC (@CNBC) March 1, 2024
Overview of the Money Topics
The survey found that nearly half, about 49% of the respondents were reluctant to talk about how much they spend on things generally. However, about 61% of the respondents were open to talking about how much they spend on cars.
Further, nearly two-thirds, or 62% of the respondents expressed that people in general talk too much about their money problems. This was further corroborated by the finding that indicated only 38% of the respondents believed that living authentically means being open about money with others.
About 47% of the respondents said that having an open and honest conversation about their money is more challenging than discussing their sex life.
Michael Liersch, head of advice and planning for Wells Fargo, said in the CNBC report that the results of the study which found that talking about sex and talking about money are almost equally difficult show that the taboos sometimes hold us back.
Outlook of the Financial Health of Americans
The survey further revealed the grim impact of inflation and soaring cost of living on American consumers. When asked how they are faring financially, most of the respondents admitted that they had to make major adjustments due to the economy.
Americans cut back on spending in January, with retail sales falling 0.8% from the previous month but growing by 2% annually, signaling that consumers are cutting back after their holiday spending sprees. Read more in the January Foot Traffic Report: https://t.co/ajXdZ7fAWR pic.twitter.com/CwR3u7Ws72
— Colliers (@Colliers) February 22, 2024
About two-thirds or 67% of the respondents were cutting back on spending with nearly half, 45% saying that they have put some life plans on hold. Furthermore, about a third, or 35% of the respondents said they had to dip into their savings and investments to cope with the rising costs and a whopping 62% said they had little income left over after paying their bills.