Talking about money has always been a sensitive topic. Conversations about how much we make, how we spend it, and whether we’re doing well financially are often considered awkward, embarrassing, or just downright inappropriate.
But younger workers are turning the tide in this field, and financial experts are encouraging the phenomenon: Millennials in their 30s and Gen Zers finding their footing in the workplace are becoming more transparent and honest when it comes to talking about money.
Social media trends like the recent TikTok trend “Loud Budgeting,” which encourages people to talk more openly about their finances in order to reach their savings goals, have undoubtedly helped younger generations to be more vocal. They are much more likely to express their financial situation and needs, even among their peers and coworkers.
Exclusive data from Employment Hero’s workplace wellbeing survey reveals that 44% of Gen Z workers and 34% of millennials feel comfortable talking to their manager about “personal financial concerns.” By comparison, just 28% of employees aged 45-54 and 55+ feel the same way, with 72% of those in these age groups saying they feel uneasy about the idea.
Talking openly about money and salary not only helps people to be more honest about their situations, but it also helps to close the gender pay gap and address pay inequality. But how do young people become so comfortable talking openly about money?
Why do younger generations talk so much about money?
Jolie Hu, 32, told Yahoo UK that she has a group of friends who discuss money “all the time.”
“We all work in similar industries, so we talked about salary ranges, experience, and what a good salary would be,” she explains. “We also talked about larger purchases, like buying a house, and the little things that go into that.”
Hu, who works in the technology industry, said she feels comfortable asking colleagues about salary at work: “I think it’s really important to talk about these things, and I would feel comfortable asking someone, ‘Are you happy with your salary?’ It’s wise to know the benchmark to make sure you’re being paid fairly and equally with people at your level, so it’s really important to talk about it openly.”
Smart money app Plum says it’s seeing a “growing openness” among its younger customers when it comes to discussing money, and Rajan Lakhani, a personal finance expert at Plum, says this could be partly because young people today are under intense financial pressure.
The cost of living crisis has hit Britons hard, from stagnant wages to soaring inflation. But for younger workers, rising rents and the increasingly expensive costs of everyday living like commuting to work or buying lunch are making it harder to save money and make long-term financial decisions.
“Young people don’t get the same level of support from the government and have to come up with different solutions to maximise funding potential.”Rajan Lakhani, Plum
Lakhani says these challenges are encouraging younger generations to think more openly about their financial situations: “They don’t have the same support from the government that older generations did, so naturally they have to come up with other ideas and solutions to maximize their money’s potential.”
“Part of that is naturally having more conversations with people and focusing more on financial management because there’s more of a need for financial management. I think that’s behind the cultural shift around being more open across generations.”
Social media has also played a role in encouraging people to talk openly about their financial situations, with proven and knowledgeable “finfluencers” (financial influencers) able to offer sound advice and share solutions to problems they’ve faced, which in turn inspires others to do the same.
Lakhani points to TikTok’s “Loud Budgeting” trend as one way social media is having a truly positive impact on the conversation about money: “Younger people are becoming more and more concerned about their finances. By participating in this trend, young people are talking about their own financial situations and audiences in similar positions feel they can talk about their challenges, too.”
“Social media is extremely beneficial in this area because people talk publicly about what they’re doing to get their finances under control. Once they do that, making a public commitment to saving and budgeting has a psychological impact that encourages people to follow through.”
Can bad things happen if we talk openly about money?
While most experts agree that younger generations are more open when it comes to money, the topic of wages can be a bit of a sticky one, especially when it comes to relationships with coworkers and employers.
Some people may not be able to discuss their salary at all if they are prohibited from doing so by a pay secrecy clause in their employment contract, but according to Sprintlaw, these clauses are not legally enforceable under the Equality Act 2010, meaning employers cannot fire employees for discussing their salary.
Despite this, many Gen X and Baby Boomer employees still find the issue difficult to address, whether it’s out of fear that they may be punished by their employer (which is illegal) or simply because talking about pay was considered a private matter when they were younger.
Kevin Fitzgerald, UK managing director at Employment Hero, told Yahoo UK: “Those who provide pay details, and those who accept that information, need to be aware that it may not always be rosy.”
“If a colleague in your job is making more or less than you, it can have different feelings. Finding out you’re making less can be hurtful and can make you question yourself and your skills. Or, making more than your colleague can be perceived as bragging or showing off, even if it’s not your intention.”
“This can cause problems not only with your relationship as an employee but also with your employer. We recommend not jumping to conclusions about why your salary is increasing or decreasing, but speaking to your employer.”
Talking about money between different generations doesn’t have to be awkward. Lakhani says many older people understand that younger generations are facing new financial challenges they didn’t have to face, and they’re eager to support them.
“It can be difficult to talk about money with older people because they’ve been brought up thinking it’s bad manners to talk about money,” he says.
“But approaching the issue in an open way that invites the older generation to talk about finances, finding the right time and explaining why you’re having the conversation will make it normal for them, too.”
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