It may no longer be a no-no to talk about money, according to Hearts & Wallets, an investor data source.
Three out of four consumers ages 28 to 39 who were part of focus groups arranged by Hearts & Wallets said they talk finance with friends, which is an increase of 17 percentage points over the past five years. Half of consumers ages 40 to 52 said they talk finance with friends, an increase of 7 percentage points during the same time period.
The focus groups included 70 participants ages 28 to 52 with $175,000 or more in investable assets and $50,000 outside their workplace retirement accounts. Three focus groups were held in each of three cities, St. Louis, Philadelphia and Los Angeles.
“The taboo to discuss investing is lifting for consumers,” said Laura Varas, CEO and founder of Hearts & Wallets. “Because fewer people have pensions, consumers are taking action to manage their retirement and seek out a variety of resources, including friends. Learning how friends share information about finance can help firms to develop strategies for engagement and new products.”
Those who talk frequently to friends about money also delve into more specifics than those who just talk once in awhile, according to the research in The Accumulators 2018: Talking Finance with Friends. Of those who frequently use friends as a sounding board more than half also use social media as a source of investing information and advice.
Financial advisors can use this thirst for information on the part of investors to prospect for clients.
“Consumers are hungry for unbiased content they can trust for investing decisions,” said Beth Krettecos, co-author of the report. “Firms can become a go-to resource by partnering with respected third-party content providers on their platforms and evolving to support the growing social nature of investing.”