A new survey has stated that an aversion to discussing money matters with family, commonly known as the ‘Money Taboo’ runs deep in Indian culture. Discussing finances as a family has been misinterpreted for years as sharing of personal data, or perceived as inappropriate and awkward. However, with 75% of Indian families now discussing financial matters, that story takes on a positive spin.
Scripbox, a digital wealth management platform, released their findings on the changing mindset around financial awareness in Indian families, just ahead of the International Day of Families on May 15. According to their recently concluded survey, 64% of conversations on financial matters for people aged 35+, dwell on monthly budgeting and expenses, whereas new investments and big purchases account for 60% and 54%, respectively.
Scripbox said it polled more than 1100 adults in this all-India survey.
Among people aged 35+, there is absolute agreement when it comes to the benefits of creating a financial plan together as a family. Over 60% of those surveyed said that it leads to a better understanding of current finances, 58% said it increases the ability to meet financial goals together, and 51% believed that it promotes more trust and understanding among family members.
Though there are more family discussions happening on general financial matters, limitations still persist in making investment decisions. Younger couples (below 35) are more comfortable in discussing investments (47%), as compared to only 38% of older couples (above 35). Similar patterns are visible in terms of how often people speak of such investments. 60% of younger Indians (below 35), discuss regularly as compared to 42% above 35.
According to the survey, the primary reason (28%) people don’t have investment discussions with their family is the lack of financial literacy. 26% of the respondents also cited their fear of judgment and criticism as a key factor.
Interestingly, around 60% of those surveyed, confirmed that their families are privy to details about their investments accounts, passwords, bank accounts and insurance policies. This hints at how Covid has helped people realise their mortality and made them understand the importance of offering alternative access to financial information, the report said.
90% of the respondents admitted to being impacted as a family in more than one way, by the overall economic uncertainty. 27% said that it impacted their family expenses, whereas 30% admitted that it made them more conscious about their savings. On a positive note, around 80% of respondents above 35 believe they are well-equipped to ensure their family’s well being.
Atul Shinghal, founder and CEO, Scripbox, said, “In times of crisis, while our general tendency is to refrain from sharing, I would always advise to make the family aware and let them participate as family expenses are borne by all. While one or two people might be earning, making sure that the family is aware and in agreement of financial decisions helps us be better prepared for the future.”
“What’s truly positive is the increased understanding among 40-year olds on the importance of discussing finances with their families, and its translating into a better preparedness for volatility. But there is also the need to address financial literacy and stigma that is still hindering families from making better financial decisions,” he added.
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