Go Ahead — Talk About It

Prying into people’s financial affairs is gauche. But ignoring money issues — those of your pals, parents or offspring — is an even bigger faux pas.

We pay a high price when we keep mum about money. Kids repeat the credit card sins of their parents. Co-workers settle for lesser raises than they might be entitled to. And heartache and unanswered questions come up when loved ones die without vocalizing their final wishes. Sometimes you simply have to put it all on the table.

Do you know what your parents make (or made when they were working)? What was their mortgage payment? What financial sacrifices did they make to have the life they built? Bring up these questions, especially when it’s time for you to buy your first (or third) home, or decide on public or private school for your kids. You may learn something. In the future, talking about long-term care insurance and living on a fixed income won’t seem as awkward. You’ll be able to hear your parents’ wishes and have them learn about yours.

Do your kids know what it costs to put a roof over their heads and food in their tummies? Why not? Consider an open-checkbook policy, and find ways to expose them to some of the financial products — particularly credit cards — that they’ll face in a few years.

How do your friends and peers spend their paychecks? Do they max out contributions to their 401(k) accounts? What does their weekly grocery bill come to? Where did Jenny get that fabulous sweater?

Sharing salary information with friends in your business will give you a good barometer of what’s happening in your industry and whether your employer is keeping pace. If you’re too squeamish to talk finances with friends, join conversations on the Fool Discussion Boards at http://boards.fool.com.

Try practicing financial openness. Talk about your next major purchase and how long it’s taking you to save for it. See what you learn when you’re open about money issues. 