Talk Money Week 2025 – It’s time to start the conversation about money

As a nation, the UK is notoriously tight-lipped about certain topics, and money is probably top of that list. 

Many people are reluctant to talk about their personal finances – for example, how much they earn, how much their property cost, and the value of savings, investments and pensions, and any debt.

But the Money and Pensions Service (MaPS), a non-departmental public body sponsored by the Department for Work and Pensions, wants to break down the barriers and get people having more open conversations about their finances. And there are plenty of benefits of doing so.

For instance, talking to children early on about their pocket money could prompt them to make more considered decisions. It could also help them with more serious money matters in the future.

Equally, having a conversation could help someone gauge the level of risk of an important financial decision if they’re willing to open up about their circumstances with close friends or other family members.

In fact, MaPS research shows that talking about money empowers individuals to make less risky decisions, and that it helps younger generations develop healthier money habits. People who talk about their finances typically feel less stressed and anxious, and more in control.¹ 

Managing the great wealth transfer

It has been widely reported assets worth trillions of pounds are likely to be passed down from families to future generations over the next three decades. 

Assets to be transferred include property, pensions, savings and investments.

Most families have some idea about how they would like their wealth to be passed down to their descendants, but may not have a full picture of how it will work in practice.

In such instances, a conversation could go a long way. By discussing finances early on, parents and children can have a clear understanding of how much the family wealth is worth, when and how to pass it on, and any wishes of how the assets should be managed. 

Considering how complex assets such as pensions and investments can be, having a conversation about them could make all the difference.

Furthermore, a chat about money can help avoid any misunderstandings down the line.

On a practical level, it may also enable parents to reduce a potential inheritance tax bill if they decide to give money away now, while providing a financial boost to children who may be struggling to get onto the housing ladder or more generally with cost-of-living pressures.

Discussing money with children

St James’s Place’s Real Life Advice Report 2025² shows that families who communicate openly about money encourage better habits among younger generations.

The survey highlights some reassuring figures. For instance, more than half of parents (56%) actively encourage their children to develop healthy money habits, while 35% of parents give their children responsibility for managing some money, from pocket money to budgeting tasks.

Living within their means, having a rainy-day fund for unexpected surprises, saving for retirement and tracking spending are the main financial lessons that parents are keen to pass onto their children.

Invite someone else into the conversation

Everyone feels differently about money. This is one reason why having a discussion can sometimes turn into a challenging task.

Conversations – particularly those about succession – are rarely easy. They may involve discussions around death. Similarly, conversations about debt may trigger differences of opinion.

Claire Trott, Head of Advice at St. James’s Place, says parents could be reluctant to speak to children for many reasons, just as children might be scared to talk about managing their parents’ money after they die.

“Getting a family meeting in the diary to discuss the practicalities of inheritance and understanding the process and what may or may not be due in tax is a great way to clear the air,” Claire says.

“It can encourage an open forum to try and ascertain the best way forward and if now is the right time to start any gifting directly or if trusts really are the answer to help protect everyone.”

In some instances, it could prove useful to involve someone else who can help the conversation stay on course and avoid conflict. This might be a close friend or a trusted financial adviser who can foster and encourage a safe and healthy conversation.

“It is very clear that having someone outside of the family in the room is a real game changer to these types of conversation and shouldn’t be underestimated,” Claire adds.

While it might sometimes be difficult, having a conversation about money could lead to positive outcomes. It should help those involved feel more empowered, while helping them to build financial resilience for the future.

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.  

Trusts are not regulated by the Financial Conduct Authority.

Sources

¹Talk Money Week | Money and Pensions Service
²Research conducted for St. James's Place by Opinium surveyed 8,000 UK adults nationwide between 22 July 5 August 2025.Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population.