A Survey On How Different Generations Talk About Money – Forbes Advisor

Money is an important aspect of life, and the ability to talk about money matters could help individuals grow their personal finance knowledge. However, the hesitancy to discuss personal finance topics continues to plague certain generations.

A new survey by Forbes Advisor uncovered differences and similarities across generations (Generation Z, Millennials, Generation X and Baby Boomers) when it comes to talking about money. We also reveal how confident Americans are in their financial literacy, and we identify the group Americans think should be responsible for teaching people about money.

Some of Us Talked About Money Growing Up

According to our survey, it seems that younger generations are taking strides toward financial literacy, which was not necessarily common among Baby Boomers when they were growing up.

Although the majority of generations grew up in families that talked about money (73% of Millennials, 57% of Generation X and 55% of Generation Z), just 41% of Baby Boomers grew up in families that talked about money. And of those who grew up in families that talked about household finances, those conversations were most likely to happen a few times a week for Gen Zers (48%), Millennials (42%) and Gen Xers (39%). For many Baby Boomers, families discussed money only a few times per month (32%).

The survey also revealed that not only were respondents from older generations less likely to have grown up in families that frequently talked about money, but they were also less likely to report positive experiences from such discussions when they did happen. For all respondents, the overall sentiment of money talks with family was educational or encouraging. Compared to Gen Zers and Millennials, more Baby Boomers and Generation Xers said that talking about money with family was usually stressful.

Even though talking about money with family was educational for many respondents, parents or guardians were not alone in teaching survey participants about personal finance topics—though for most, they were most influential. When asked to indicate who taught them about money, all but one generation cited parents or guardians as their main mentors. Generation Z reported leaning most on partners or spouses.

Millennials also learned from friends, and Generation Xers and Baby Boomers learned more from educators or teachers than partners or spouses. These findings suggest that one’s upbringing likely influences how they learn about money, and each generation has multiple people to thank for helping them grow their foundational knowledge.

We’re Generally Open To Talking About Money

No matter who you’re talking to, discussing money can be uncomfortable—but many people are up to the challenge anyway. Our survey found that most people are open to talking about money, regardless of their age. When asked to rate their current openness when discussing money-related topics on a scale of zero to five, with five being the most open, there was little variance among generations. Overall, more than one-third of respondents (37%) chose four or five and about 35% chose three, indicating that they were neither open nor opposed to discussing finances.

When we asked respondents to select the personal finance topics they are comfortable discussing with others, we found that Millennials (55%) were the most comfortable discussing salary and compensation compared to those who are older and younger. But across all generations represented, savings and investments are consistently the most talked about topic.

While oversharing about your personal or financial information is never recommended, those who have healthy financial discussions with others are better for it. According to our survey, 68% of Millennials have learned valuable financial insights or information by having open conversations about money or finances, followed by Generation X (63%), Baby Boomers (56%) and Generation Z (55%).

But despite conversations about money being productive for most, money is often still taboo, and many people feel apprehensive about opening up. However, over half of all respondents stated that they would be more willing to have financial discussions if someone else initiated them. Millennials (65%) led the way, with Generation X (56%), Generation Z (54%) and Baby Boomers (49%) trailing behind.

For those who aren’t willing to discuss their finances with others, even if someone else initiates the conversation, Baby Boomers (57%) and Generation X (45%) cited “money is personal” as their top reason, and 48% of Millennials cited “insecurity about their finances” as theirs.

While discussing finances with peers or colleagues certainly has its benefits, more complicated money matters may require the expertise of a financial expert. But when it comes to seeking ongoing financial advice, generations differ on where they look for it. Interestingly, Generation Z is most likely to seek financial advice on social media (46%). Conversely, Baby Boomers (26%) and Generation X (21%) were more likely to seek financial advice from a financial expert. While seeking advice on social media may be an affordable and convenient way to get answers, it can be risky in some cases—especially when you’re unsure about the sources and credentials.

Learning About Money

Financial literacy is an essential life skill that empowers you to make informed financial decisions and achieve your personal goals. According to our survey results, people across generations believe it’s a good idea to learn about financial topics early in life.

When we asked survey participants the best age for people to start learning about money, Generation X (33%), Baby Boomers (32%) and Generation Z (26%) all answered middle school. Millennials (27%) think elementary school is the ideal age for starting to learn about money. Understandably, less than 3% of participants felt adulthood was soon enough.

But who should be responsible for teaching these principles? The answers are divided. Baby Boomers and Gen Xers think the responsibility should primarily fall on parents, while Gen Zers and Millennials believe teachers or professors should be responsible.

However, regardless of who’s responsible for teaching money topics, there’s still a lot of work to be done to improve financial literacy for everyone in the United States. According to data from the 2021 TIAA Institute-GFLEC Personal Finance Index, financial literacy tends to be low for each generation, but especially among members of Gen Z. Gen Z is also the most likely to have participated in, or been invited to participate in, formal financial education in school.

Our survey data supports these findings. When we asked participants to rate their own financial literacy on a scale of zero to five (five being the most financially literate), less than half of Millennials (43%) and Generation X (43%) rated themselves as the most financially literate, followed by Baby Boomers (42%) and Generation Z (35%) when we combined results for four and five. Thirty-six percent of all respondents rated themselves at a three.

Financial Openness in the Workplace

Financial openness in the workplace could contribute to a more transparent work environment, but different generations have varying opinions about whether this would be beneficial or not.

Only 23% of Baby Boomers think talking about money at work could improve financial literacy in the workplace, compared to younger generations (55% of Millennials and 42% of Gen Z). And while more than 65% of Millennials (76%), Gen Zers (74%) and Gen Xers (66%) were very or somewhat willing to share their salary or compensation with a co-worker, just 37% of Baby Boomers reported the same.

Baby Boomers not only feel uncomfortable sharing their salary information, but they also tend to refrain from asking colleagues about their pay. According to our survey, 36% said they’d be very or somewhat willing to ask a co-worker how much money they make. For comparison, 74% of Millennials said the same.

How Honest Are We With Others About Our Salaries?

When it comes to discussing salaries, people might be open, but they’re not always truthful. We asked survey respondents if they had ever lied about their salaries to family, friends or co-workers, and although many said they had not, some said they had.

While Millennials led the charge as the generation most willing to talk about salary with co-workers, they were also more likely to lie to co-workers (52%) and friends (50%) about their salaries than any other generation. On the other side of the spectrum, Baby Boomers were least likely to bend the truth when disclosing their pay to their friends (25%) and co-workers (28%).

What explains the difference? There could be many potential reasons, but our survey revealed that nearly half of Millennials (48%) are insecure about their finances and that more than one-third (39%) don’t trust others enough to discuss money. So even though many respondents expressed being comfortable having salary-related conversations, they aren’t necessarily comfortable being honest. Whatever the case, it’s clear that salaries remain a sensitive subject.

Tips for Talking About Money With Others

If you’ve been avoiding discussions about your finances but are ready to give it a try, follow these tips to feel more comfortable and better equipped when talking about money.

• Keep your emotions in check. Money discussions can become heated if you and the other person don’t see eye to eye on certain topics. If you’re struggling to keep your emotions under control, revisit the conversation later for a better chance at productive, objective discussions.
• Be transparent. If you want transparency from the other person, lead by example. By sharing your financial goals, successes and struggles, you create a safe space for open and honest conversations about money. And if you’re seeking guidance from a financial expert, being honest about your finances and goals is even more important.
• Seek professional advice when necessary. Certain subjects, such as taxes and loans, are complex by nature. If you’re feeling overwhelmed or confused by anything, consider finding a financial advisor to talk to. Financial advisors provide neutral and expert guidance to clarify confusion, answer questions and help you make informed decisions.
• Be respectful and understanding. Money can be a touchy topic for many. Always approach a conversation with respect, acknowledge the other person’s perspective and avoid passing judgment on others’ financial choices.

If there’s anything our survey revealed, it’s that everyone feels differently about talking about money but that many people are at least somewhat open to it. Try having more conversations about personal finance in your everyday life if you want to learn from others’ experiences.

How To Improve Your Financial Literacy

It’s never too late to improve your financial literacy. No matter where you are in life, start taking the following steps to develop healthy financial habits and learn more about money.

• Consume financial content. Books, newsletters, articles, blogs or podcasts can all be great resources for improving your financial literacy. The Financial Literacy Resource Directory, developed by the U.S. Office of the Comptroller of the Currency, is also an ideal place to begin or continue your financial literacy journey. It provides a wide selection of educational resources arranged by topics like housing, borrowing and investing for retirement. For step-by-step guidance, consider taking an online course.
• Work with a financial advisor. Working with a financial advisor costs money, but it’s often worth it. You may pay a few hundred or thousand dollars to work with a financial advisor. But you can reap the rewards of a solid financial foundation for decades—which could be worth multiple times what it costs. There are also many credible places to find free professional financial advice, so don’t let your budget stop you.
• Learn how to budget. Another key aspect of financial literacy is budgeting. If you don’t have a budget, your income might not be working for you as well as it could and your expenses may spiral out of control. Consider using a budgeting app like Mint, YNAB or PocketGuard to help you track your spending and align your financial goals.
• Understand what affects your credit score. A crucial part of bettering your financial literacy is understanding what affects your creditworthiness. Your credit score is like a grade for your borrowing history and lets future lenders know how responsible you are about repaying money. Payment history, credit mix and the amount of credit you have all play a role. Take time to learn what impacts your credit score and how to boost it.

Methodology

This online survey of 2,000 U.S. adults evenly split by generation (Gen Z, Millennials, Gen X and Baby Boomers) was commissioned by Forbes and conducted by market research company OnePoll, in accordance with the Market Research Society’s code of conduct. Data was collected from Sept. 6 to Sept. 19, 2023. The margin of error is +/- 2.2 points with 95% confidence. This survey was overseen by the OnePoll research team, which is a member of the MRS and has corporate membership with the American Association for Public Opinion Research (AAPOR).