One in five (19 per cent) adults are too embarrassed to discuss their finances with close relatives, according to research by M&G Wealth.
As the cost-of-living crisis bites, 20 per cent of adults said they hide their finances from their family.
M&G Wealth’s Family Wealth Unlocked report, published this week (September 27), looked at the financial habits of 2,000 UK adults who personally use or have a family member who uses a financial adviser.
According to the report, long-term finances could be impacted by a contraction in conversations, as individuals are not planning ahead and could be missing out on finding financial solutions.
It found that there’s been an increase in the number of people not wanting to discuss finances since the start of the cost-of-living crisis and are hiding worries or money from their loved ones.
Only half (49 per cent) of respondents in a couple talk openly about their finances with their partner, a drop from 69 per cent who said they did so in 2022.
Meanwhile, almost a quarter (23 per cent) said they wouldn’t discuss their finances with anyone in their family.
Kirsty Anderson, savings expert at M&G Wealth, said: “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.”
Respondents also said they are more likely to seek advice from financial websites (21 per cent) or online search engines (18 per cent) than from their partner (15 per cent) or parents (13 per cent).
This comes as a fifth (21 per cent) 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”.
Anderson said: “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 helping 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 also found that nearly four in 10 people surveyed (37 per cent) have reduced savings and investments contributions because of the cost-of-living crisis, with an additional quarter (27 per cent) also looking to do so before May 2024.
Inheritance impacts
M&G said family communication is particularly crucial for those expecting to inherit funds from their relatives.
