“An investment in knowledge pays the best interest.” – Benjamin Franklin
The statistics concerning our personal use of money are not particularly good:
- Nearly 70% of Americans have less than $1,000 in savings.
- 25% of Americans have no savings at all.
- The average U.S. household owes $7,149 in credit card debt.
- 40% of Americans spend up to half of their income servicing debt.
- Less than 1/3 of Americans use a budget.
No wonder money remains the most common conflict for American couples and a leading cause of stress.
The statistics concerning our personal financial habits are downright sad. And yet, nobody is talking about it… at least, not in personal terms.
Money remains one of the least-discussed topics of conversation in our society. We have been conditioned, it seems, from a young age to not talk about it. We fear looking foolish in our personal decision-making. We worry about stirring up envy or comparison among our friends and family. Or we are concerned about how we will be perceived.
So it seems easier to not talk about it. As a result, we often go at it alone hoping our own judgment will serve us well in our personal financial decisions.
However, based on the numbers above, it is not.
Our silence is ruining us. Not having this conversation is negatively affecting us as persons, as families, and as a society. Personal finance is a conversation we need to be having with our closest and trusted friends. We have so much to learn from one another in all aspects of life—finances included.
While many people do not have financial advisers they meet with often, almost all of us have friends and relationships with people we look up to. Next time you are with somebody you admire, bring up the topic of personal finance with a spirit of curiosity and humility. Try asking some important questions.
Here are ten money questions to ask your best friend.
The conversation will help you, and probably them, make better financial decisions.
1. Can I ask you a money question… About what percentage of your income do you spend on housing? How did you decide on that amount?
2. Do you have a monthly payment on your car? When you bought the vehicle, how did you decide how much you were going to spend?
3. I have a personal question for you if you don’t mind… Are you currently saving money for retirement? Are you happy with how much you are saving? When did you start?
4. Do you have health insurance? Can I ask how much you pay for it?
5. Did you have to take out a loan for school? If so, are you doing anything to pay it off early?
6. Do you and your spouse set a financial budget for your home? Do you have good tips on how to find something that works?
7. Is there a thought process that you use when making large purchases?
8. Do you invest any money in the stock market? Where do you go to find advice?
9. What is the best piece of financial advice you’ve ever received?
10. Are you doing anything specific to teach your kids about personal finance?
Now, I’m not assuming your friend will have all the perfect answers to these questions. But sometimes, the first step to finding the correct answer is simply beginning the conversation.
What other financial questions do you think would be helpful to ask a trusted friend?
rosie says
I would ask
Do you have disability insurance?
Do You have an investment plan
Do you and spouse , if they have one, make financial decisions together.
Thanks for this thought provoking post
Ann C says
Great list. I would add some type of question about life insurance for those with dependents. And perhaps about pre-paying for funerals for the retired group.
LeVadie says
What a morbid suggestion for today. Wish you well, :0(
Ness says
Why morbid?
Funerals and life insurance – really? Such an important and inevitable part of life, plan for it and it won’t seem so scary.
Karla says
True, those are words of wisdom. Tx. U wouldn’t think that dying nowadays can cost so much. Ironically. So sad. This is what we work everyday for more of less. That’s the benefits, it is undeniable.