American culture changes at a breakneck pace. In 2024, just ask any fan of the Stanley Cup and skinny jeans. But over the past few decades, one tenet hasn’t changed much. That is, don’t talk about your personal financial situation. Money is such a touchy topic today, with only 38 percent of U.S. adults feeling comfortable talking to family and close friends about their bank account balances, according to Bankrate’s new Financial Taboo Survey.
It’s natural to feel anxious when thinking about discussing your financial situation. But having open conversations about money can be a powerful tool for learning more about your money. You might be surprised at how often people around you can give you helpful advice when you ask common money questions, like how to use credit card perks and how to save money.
Bankrate’s latest data breaks down exactly how Americans feel about discussing their money, especially this upcoming holiday season, and how you can approach uncomfortable conversations about lending money. I will explain.
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Talking about money is more taboo than politics or religion
Only 38% of U.S. adults feel comfortable talking to family and close friends about their bank account balance, and are more likely to feel free to talk about their love life (47%), credit card debt (52%), weight (71%), and political status. This is a lower percentage than those who can speak. views (78%), religious views (81%), or health (81%).
money bag
I don’t think I’ll be able to raise money this holiday season.
Just 14% of U.S. adults say money is often talked about during holiday gatherings with friends and family.
55%
Lending and borrowing money doesn’t always work out.
55% of people who lend money or pay organization fees with the expectation of repayment experience negative consequences afterwards, such as losing money, damaging their credit score, or damaging their relationship with the other party. I had an experience.
Younger generations are more comfortable talking about money than older generations
People don’t like to talk about money, even with close friends. Fewer than 2 in 5 Americans (38%) feel comfortable discussing bank account balances with family and close friends, less than 2 in 5 Americans (38%) feel comfortable talking about the details of their love lives (47%) and credit card debt (52%). It’s a smaller percentage. , weight (71 percent), political views (78 percent), religious views (81 percent), or health (81 percent):
Source: Bank Rate Survey, August 28-30, 2024
Note: Due to rounding, percentages may not add up to 100%.
In general, older generations are more reluctant to talk about money than younger generations. For example, nearly half of Gen Z (52 percent) and more than two in five Millennials (44 percent) are comfortable sharing their bank account balances with family and close friends, compared to 34 percent of Gen percent, and 29 percent for baby boomers.
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Additionally, 57 percent of Gen Z and 55 percent of Millennials are comfortable sharing information about their credit card debt with family and close friends, compared to 48 percent of Gen X and 50 percent of Baby Boomers. is not.
credit card 101
Credit cards are easy to use, but understanding how interest rates and cash advances work can be difficult. If you can’t talk about money with friends and family, but still want to learn more about credit cards, Bankrate’s credit card essentials guide is for you.
learn the basics
During the holidays, it is more common to give financial assistance than to ask for help.
With the holidays just around the corner, dinner table conversations are likely to revolve around more than just money. Just 14 percent say money is often talked about during holiday gatherings with friends and family.
Talking about money can be uncomfortable. 10% of people say their friends and family often ask them awkward questions about money during the holidays.
Source: Bank Rate Survey, August 28-30, 2024
Note: Respondents can select multiple options.
Some people help their loved ones financially during the holidays, but few ask for help themselves. Almost one in five people (19%) have offered financial help to a friend or family member at a holiday gathering; was only 9%. Only a few (8%) say they’re worried about their family or friends’ financial situation and plan to talk about it this holiday season.
Millennials and Gen Z also seem to be more likely to encounter money discussions at holiday gatherings than older generations. A quarter (25%) of Gen Z and 18% of Millennials say money is often talked about during holiday get-togethers with friends and family, compared to 11% of Gen Among baby boomers, the figure is 7%.
Will re-gifts be accepted?
Re-gifting is usually financially taboo, but it’s more common than you think. One-third (33%) say re-gifting a holiday gift is an acceptable practice, and 30% say they have re-gifted something they received as a holiday gift. Masu.
Baby boomers are the generation most likely to say re-gifting holiday gifts is an acceptable practice.
Gen Z: 22 percent
Millennials: 32%
Gen X: 33 percent
Baby boomers: 39%
Lending money is common, but so is not being repaid.
Relatively few people provide financial support to loved ones during the holidays, but a high percentage lend money throughout the year. According to Bankrate, half of American adults (50%) have lent money to someone with the expectation of repayment. Similarly, 32% of people have paid for a group expense (such as a restaurant bill, tickets to an event, or a group gift) with the expectation that it will be repaid.
Lending money to a friend or covering a group shopping trip is generous, but it can also have unintended consequences. People who lend money or pay for group expenses with the expectation of being repaid are more likely to lose money (42 percent), damage their relationship (24 percent), or damage their credit score. (9 percent), or worse. Physical altercation (4%):
Source: Bank Rate Survey, August 28-30, 2024
Note: Percentage is the share of U.S. adults who have lent money to someone or paid for a group with the expectation of being repaid. Respondents can select multiple options.
*There is nothing wrong with me for lending money or paying for the organization’s expenses.
Compared to other generations, Millennials (ages 28-43) are the most likely to have been burned, with nearly two-thirds (62 %) as a result of experiencing negative outcomes. This is higher than 53% of Gen Z (ages 18-27), 54% of Gen X (ages 28-43), and 51% of baby boomers (ages 60-78).
Most commonly, millennials who lent money or paid group expenses with the expectation of repayment suffered losses.
Money loss: 48%
Damaged your relationship with that person: 28%
Damaged credit score: 12%
Got into a physical altercation: 7%
Other negative effects: 2%
Read more: Why is good credit so important?
3 tips to keep in mind when borrowing money
When you lend money to a friend or family member, you expect it back quickly. Unfortunately, it’s not always that simple. The next time you lend someone money or cover a bill while you’re away, consider these three tips.
1. Adjust your expectations.
Lending money to friends and family may feel unpleasant, but having them repeatedly give you money can make it even worse. If you are planning to borrow money, you may want to change the way you think about loans.
“Lending money to family and friends represents a potentially sticky situation,” said Ted Rothman, senior industry analyst at Bankrate. “First of all, don’t lend more than you can afford to lose. Second, consider treating the money as a gift rather than a loan.”
Before lending someone money, ask yourself if you intend to consider the funds as a gift rather than a loan in case the person is unable to repay. Make sure you can afford to take a hit even if you never find the funds again.
2. Suggest alternatives.
If you don’t feel comfortable lending money, Rothman suggests offering to help in other ways, such as offering advice on how to make money on the side. Or, if the person is looking for a higher paying job, offer a connection, such as introducing them to someone in your network.
If you don’t feel confident giving financial advice to others, Bankrate has up-to-date guides on common financial issues, including what to do if you find yourself in a financial emergency. Or consider referring people to people who can provide free financial advice, such as banks, credit unions, budgeting apps, or local organizations.
3. Use a bill-splitting app.
Next time you pick up this tab, you don’t have to hunt everyone down for contributions. Instead, consider a free bill-splitting app that takes the hassle out of figuring out who pays what. Splitwise is one of the most popular apps for splitting everything from restaurant bills to monthly expenses, but other apps include Tab and Tricount.
Most bill splitting apps have the ability to upload expenses and invoices, calculate who owes what, and submit requests directly through the app. You can also use it to settle expenses with your roommate or partner, so you can worry more about who’s doing the dishes rather than who’s behind on the utility bill.
methodology
Bankrate commissioned YouGov Plc to carry out the investigation. All figures are from YouGov Plc unless otherwise stated. The total sample was 2,502 U.S. adults, 1,594 of whom had lent money or paid group fees with the expectation of repayment. The field survey was conducted from August 28 to 30, 2024. The survey was conducted online and met strict quality standards. Employs a non-probability-based sample that uses both quotas upfront during collection, then goes through a sample matching process and employs a back-end weighting scheme designed and proven to provide nationally representative results I did.