Nowadays, it is increasingly common among people to openly share their financial states with others. As clear evidence of this phenomenon, earnings and expenditures are becoming a topic of daily conversations. While it is well understood that complex financial world and better opportunities may be stimulating these people to be open about their financial circumstances, the negative effects of it are more substantial than the positives.
Examining the factors contributing to the development of this conversational norm, the first is the increasing complexity of today’s financial world. Various forms of taxes along with sophistication of financial procedures and operations in bank systems puzzle/baffle financially-illiterate among us. Therefore, the need for exchange of information about this sphere is shared by many, leading them to disclose their salaries and expenditures if and when necessary.
Another important reason for discussing financial matters explicitly is associated with seeking for better opportunities. Our immediate circle, particularly friends, weak-ties and colleagues, can be an effective source of useful information. If, for example, somebody honestly speaks about their financial problems, the listeners may offer lucrative business plans or investments, bringing about positive changes to their financial problems.
In connection with the impacts of this development, formation of a sense of inequality may probably be the most significant. When a person, say, mentions their monthly earnings boasting about their financial superiority, this may lead to a sense of discrimination. Moreover, doing so can even affect others on emotional grounds, potentially lowering their self-esteem. Hence, if the topic of financial matters may not always be the most ideal topic for conversation.
Furthermore, there are professional and legal risks of disclosing sensitive financial information. From a professional standpoint, open discussion of high ROE’s (Return on investments) may result in emerging new competitors, resulting in low sales and lack of customers. From a legal standpoint, this may put people on jeopardy if or when they unclose their financial loopholes, such as tax avoidance measures, which holds them legally accountable.
In conclusion, it is becoming more and more prevalent for people in many countries to openly discuss their financial matters. Today’s sophisticated financial world may create the need to exchange information as well as the likelihood of palatable opportunities. Despite the positive intentions behind this act, this situation may pose dangers of its own, creating a sense of inequality, and legal and professional liabilities. Therefore, it is essential for people to acknowledge the sensitivity of this topic and keep themselves tactful about their financial plans.