More people are avoiding financial discussions and concealing their financial concerns with one in five adults with financial advisers hiding finances from family, and 19 per cent feel too embarrassed to discuss money, up from 14 per cent in 2022, according to M&G Wealth.
The “Family Wealth Unlocked” report by M&G Wealth, now in its third year and released today, examines the financial behaviours of 2,000 UK adults who either personally use financial advisers or have family members who do.
The report also highlights that only half of respondents in a couple talk openly about their finances with their partner, a huge drop from 69 per cent who said they did so in 2022. Almost a quarter said they wouldn’t discuss their finances with anyone in their family.
Respondents are more likely to seek advice from financial websites, 21 per cent, or online search engines, 18 per cent, than from their partners, 15 per cent, or parents, 13 per cent. This comes as a fifth of people surveyed worry about having to support their family financially on a daily basis, with 11 per cent worrying about this multiple times per day.
Nearly four in ten people surveyed, 37 per cent, have reduced savings and investment contributions because of the cost-of-living crisis, with an additional quarter, 27 per cent, also looking to do so before May 2024.
M&G Wealth savings expert Kirsty Anderson says: “Discussions about money have always varied between families, but our research suggests that openness between generations is taking a hit in this current cost-of-living crisis. In an environment when everyone is feeling the pressure, it is important that conversations about money start at home. Now is not the time to shy away from discussions or hide financial issues, as speaking about problems and being honest with family members can provide the extra mental and emotional support people might need, as well as helping them to create a financial plan.
“Our data shows an increase in the amount of family gifting between generations, with older family members less likely to wait to pass on money through inheritances. Gifting can work out as a tax-efficient measure to help younger family members deal with life events or daily financial challenges, from buying a house or paying for a wedding, to just to help them to manage their day-to-day bills. Encouraging conversations at home about financial affairs, or seeking professional financial advice, could help to unlock solutions for those struggling.
“The research shows that financial advisers are in a good position to facilitate these conversations within families, as a growing number of people are now sharing their adviser with other family members. Individuals benefit from the knowledge of the family’s financial affairs while enabling them to better prepare for the future from a more informed point of view.”
