How Millennials and Gen Z are breaking taboos around money talk

Talking about money has always been a touchy subject. Conversations about what we earn, how we spend it, and whether we’re doing alright financially are often seen as awkward, embarrassing, or even downright inappropriate.

However, younger workers are changing the tide in this area - a phenomenon that financial experts are encouraging. Younger Millennials in their 30s and people from Generation Z who are finding their feet in the workforce are becoming more transparent and honest when it comes to money talk.

Social media trends like ‘loud budgeting’, which refers to a recent TikTok trend that encourages people to be more open about their finances to reach their saving goals, have certainly helped younger generations be more vocal. They are much more likely to express their financial situations and needs, both among peers and colleagues.

Exclusive data from Employment Hero’s Wellbeing at Work survey revealed that 44% of Gen Z workers and 34% of Millennials feel comfortable talking to their manager about “personal finance concerns”. This is compared to just 28% of 45 to 54-year-olds and employees aged 55 and up who feel the same way, with 72% of these age groups saying they are uncomfortable with the idea.

Speaking openly about money and salaries not only helps people be more honest about their individual situations, but it can also help close the gender pay gap and address pay inequality. But how did younger people get so comfortable talking candidly about money?

Why are younger generations talking more about money?

Jolie Foo, 32, tells Yahoo UK she has a group of friends who discuss their finances “all the time”.

"We all work in similar industries so we started talking about salary ranges and experience and what a good wage would be," she explains. "We also discuss big purchases and all the little details that go into them, like buying a house, for example."

Even in the workplace, Foo, who works in the technology industry, says she feels comfortable asking her colleagues questions about what they earn. "I think it’s really important to discuss these things and I’m very comfortable asking someone, ‘Are you happy with your salary?’ It’s wise to have an idea of what the baseline is so you can make sure you’re getting paid fairly and equally with others on the same level as you, so talking about it openly is crucial."

Smart money app Plum says there is a "growing openness" among its younger customers when it comes to discussing money. Rajan Lakhani, personal finance expert at Plum, says this may be partly fueled by the intense financial pressures that young people are under today.

From wage stagnation to soaring inflation, the cost of living crisis hit Britons hard. But for younger workers, spiralling rent prices and day-to-day activities like commuting and buying lunch have become increasingly expensive, making it harder to save money and make long-term financial decisions.

Lakhani says these challenges are driving younger generations to be more open about their financial health. "[Young people] don’t have the same level of state support that older generations received back in the day. So naturally, you need to come up with different ideas and solutions to maximise your money potential.

"As part of that, you’re naturally going to have more conversations with people and be more focused on your financial management because there’s a greater need for it. I think that’s what is behind the cultural change among the generations about being more open."

Social media also plays a part in encouraging people to open up about their finances. Verified and knowledgeable ‘finfluencers’ (financial influencers) can offer good advice and share solutions to problems they’ve faced, which inspires others to do the same.

Lakhani points to the ‘loud budgeting’ TikTok trend as one of social media’s truly positive influences on conversations about money. “It’s genuinely engaging young people about their finances. When they take part in this trend, they’re talking about their financial situation and viewers in a similar position feel they too can talk about the challenges.

"Social media has been really beneficial in this area because, then, people also talk publicly about what they’re doing to get their finances under control. Once they do that, there’s a psychological impact to making those public commitments to save and budget that pushes people to go through with them."

Can talking openly about money go wrong?

While most experts are in favour of the younger generation’s openness when it comes to money, the topic of wages - particularly with colleagues and your employer - can get a little sticky.

Some people aren’t able to talk about their salaries at all if they are prohibited through pay secrecy clauses in their employment contract. However, according to Sprintlaw, these clauses are legally unenforceable under the Equality Act 2010, and employers cannot fire workers for discussing pay.

Despite this, many Gen X and Boomer employees still find it difficult to engage in the subject, whether it’s out of fear their employers may punish them - which is unlawful - or simply because talking about wages was considered private when they were younger.

Kevin Fitzgerald, UK managing director at Employment Hero, tells Yahoo UK: "People who are willing to offer up the details of their salary and those who are willing to accept that information have to realise that it might not be rosy.

"A peer who does the same job as you may be earning more or less than you, which can make both of you feel differently. It could be hurtful to know you earn less than a peer and that could make you question yourself and your skills. Or, if you earn more than a peer, you may be perceived as bragging or showing off, even if you don’t intend to.

"It could cause some issues both for employee relationships, but also for your relationship with your employer. My advice would be not to jump to conclusions about why you are getting paid more or less, and to speak to your employer about it."

It doesn’t always need to be awkward for the different generations to talk about money. Lakhani says there is an understanding among older people that the younger generations are facing new financial challenges that they didn’t have to, and there are many who wish to support them.

"It can be difficult to have that conversation about money with older people because they were brought up in such a way that it was considered bad manners to discuss finances," he says.

"But approaching the subject in an open way that invites older generations to talk about their finances, finding the right time and explaining why you’re having the conversation makes it normal for them as well."

Read more about money and finances:

• This is how much it costs to be a wedding guest in 2024 (Yahoo Life UK, 5-min read)

• How to save £900 on food a year, according to an expert (Yahoo Life UK, 9-min read)

• Mum saves £26k buying everything second hand, even nappies for her kids (Yahoo Life UK, 6-min read)