With the cost-of-living crisis increasing the price of everything from our energy bills to our butter, it’s easy to feel overwhelmed and like you want to bury your head in the sand. If that sounds like you, you’re not alone; a recent study shows that 52% of Brits still avoid talking about money with their friends and family.
The research, by online bank Monzo, also found that over a quarter (28%) of women admit they don’t talk about money with their partner, over a third (38%) of women feel pressured to be closed off about cash when socialising with others and 41% of women have been forced to split a bill unevenly.
With two-thirds (63%) of women admitting that knowing how to broach difficult conversations about money would positively impact their mental health, we speak to Alice Tapper, founder of Go Fund Yourself, who shares why it’s important to talk about money woes, as well as sharing some other essential insights on all things finance.
Share what you’re going through
“No one should suffer in silence, and if there’s something that affects the way you deal with your money or the relationship you have with your bank, it’s really important to speak up,” says Alice.
Some banks have added tools to help you offload, she says: “For example, Monzo’s Share With Us feature allows you to easily share any difficult situations you might be experiencing, whether that’s financial abuse or a mental health struggle.
“If it’s an ongoing issue, the support team can add a note to your account so you don’t have to explain it more than once. By using the feature, it also means you’ll have access to extra help that might be available.”
Compartmentalise to cultivate peace of mind
Setting up separate savings pots for different financial goals can really help, suggests Alice. “A neat way to combat the financial overwhelm of managing bills and payments is by compartmentalising your financial life.
“You can set up savings ‘pots’ for essential items like rent and bills, but you can also get creative—for example, setting up a ‘mental health day’ pot for when you need a little extra TLC.”
Find balance in monitoring your finances
We all know that feeling when money’s tight and you’re hyper vigilantly checking and triple-checking your earnings and outgoings, but it can be important to make sure you’re not getting too bogged down in it all says Alice. “It’s important to find a healthy balance when it comes to managing your money, and for some of us, that might mean setting better boundaries around the amount of headspace we allow our finances to take up.
“Money worries often come from the unknown - when we avoid checking our banking app altogether, or from over-engaging with our financial life - obsessively checking our accounts multiple times a day. Building a calm approach to money means having a consistent yet moderate schedule for managing your finances.
“This is highly personal, but somewhere between a weekly or monthly financial check-in is usually about right,” explains Alice.
Have an emergency fund
Preparing can set you up for success, she says: “Financial worries often come about when you don’t have a backup plan. It’s difficult to prepare for every eventuality but the practice of ‘fear setting’ is where you write down your biggest financial worries (e.g. a job loss or broken boiler) and then you outline A) how you could prevent it and B) what you would do if that thing happened.
“The solution to most big financial problems usually comes down to having a solid safety net, sometimes called an emergency fund.”
Reach out for help and embrace support
“Managing money can be overwhelming, but you don’t have to go through it alone. In the UK, there are several support services available to help you through difficult times”, says Alice.
“For example, the charity StepChange is a fantastic resource for debt advice while EntitledTo offers a benefits checker to ensure you’re accessing all the financial support you’re eligible for.
“Don’t be afraid to reach out; these services exist to guide you through difficult times and get you to a place where you feel less worried about your financial life.”
If you’re worried about money, call the National Debtline on 0808 808 4000 from Monday to Friday, 9am to 8pm or contact your local Citizen’s Advice.