Only 25% of families talk about their finances

Only a quarter of households involve all generations of the family in financial planning, newly-released research has found. 

Standard Life has looked at the issue in-depth and found the majority of families are failing to talk as a unit when it comes to discussing salaries, upcoming bills and inheritance. 

Some 79 per cent of parents who have children under the age of five admitted they ask their family for money, while 75 per cent are also comfortable seeking out advice on money matters. 

Having an open attitude obviously has many benefits, such as the fact that everyone will know where they stand and more complete plans can be created as a result. 

Personal finance expert Sarah Willingham said: "This research acknowledges the real experience of dealing with our finances as a family. Loved ones often want to help each other out. 

"It's clear that a great deal of money is flowing between the different generations. So it makes sense to discuss our plans and needs as a wider family. How else can we make sure we are laying the foundations to help our family in the future and making the most of our money?"

Based on the study, Standard Life has created three distinct family groups – talkers, gifters and avoiders. While the first two groups display financial acumen and are generous with their money, the last one is missing a trick.

Avoiders are unlikely to seek advice from other members of their family, while they are reticent to talk about some of the more difficult issues, such as their respective levels of debt. 

Julie Hutchison from Standard Life stated there seems to be a "barrier" when it comes to certain conversations about money, and this will only lead to more problems further down the line. 

She added people under pressure should always seek out advice on money matters in order to set goals and make real commitments. 

By James Francis