Money manners are not a mandatory requirement but if you have it others will enjoy the company with you. They will feel more comfortable and enjoy the space being with you. People with good money manners will create a positive impression around them. Having good money manners is important because people will not feel comfortable sharing their money-related matters with every other person. When you know the acceptable behavior of people you can easily walk in and out of any situation in your day-to-day life.
When you are with your friends, family, office colleagues you should follow some etiquette. You should follow good money manners in handling situations like paying bills when you eat out with friends, buying a birthday gift for your office colleague, asking for financial details of relatives or friends and many other situations. Here in this article, we provide you with some simple money etiquette rules that will help you to avoid awkward situations and build healthy relationships with everyone.
- Never comment on someone’s expenses
- Consider other’s financial situation
- Split your bills
- Pay for the service
- Don’t always express your financial problems
- Don’t ask about salary
- Pay debts on time
- Do not feel obligated to lend money
- Don’t always teach financial lessons
- Spend wisely
1. Never comment on someone’s expenses
Do not comment on someone’s expenses because everyone has their own lifestyle and spending habits. It is not worth discussing anything about other’s expenses and it will not give any value. If you find them wearing branded apparel do not comment that they have a higher salary which makes them afford anything. Having this attitude will distance the person from you. Though the person might be close to you it is not possible that you know all the financial situations such as loans, credit card outstandings, savings, and others.
Do not criticize yourself or do not even criticize the expenses of others. Everyone spends money in different ways and it is their choice. By criticizing you will not get any edge over the other person.
2. Consider other’s financial situation
When you are planning for any expense with your friends or relatives, always consider their financial situation. To better understand this let’s take an example here.
Suppose if your friend is offering dinner for his new job and you also know that your friend is saving money for a holiday trip. Do not force yourself to go into a luxurious hotel for dining. A wise decision is always to ask the person where they are offering dinner. Consider the financial situation of your friend before you plan. It will build a good relationship and also help your friend in achieving financial goals.
Click here for Tips to improve financial literacy
3. Split your bills
When you are traveling along with your friends or colleagues, always decide upon who is going to take care of which expenses. You can also arrange for a fund budget to make a contribution initially and after the trip split the total amount equally. By doing this you are not passing any additional financial burden to anyone. Everyone will equally have a share of their contribution.
Similarly when you go to a restaurant split your bills equally. Here sometimes it may happen that everyone will not have the same food item, some may order cocktails and someone might not have eaten much. In this situation, it is better to divide the exact count and calculate the amount each person owes. If you feel embarrassed then you might be paying an extra amount for which you have not eaten. Most of the time it depends on the relationships and some may forego these expenses in relationships. It all depends on the relationships that you have around you.
4. Pay for the service
If your friend or colleague has offered you any professional services, pay for their service. You might get their help in getting the best design for your dresses or capturing some awesome professional photographs for your wedding. Pay for the services that you get from your friends or colleagues. They have spent their time and resources on creating something for your benefit. You should not just compliment and walk away. Monetary benefits give more satisfaction than just compliments because they have invested their efforts into it.
Click here to know the Best ways to manage your personal finance
5. Don’t always express your financial problems
It is good to share your problems, it gives relief and you get moral support. If every time you regret and complain about financial problems with your friends and family members it will create a negative impression. If you know the opposite person is earning less and you complain about your financial problems to them it even creates more distress in relation. It is better to avoid such topics to avoid distress in your relationships.
If you know the financial problems of colleagues it is better to avoid asking for financial help from that person. When you are very well aware of the debts and incomes of the other person it is better to be careful while talking about financial matters.
6. Don’t ask about salary
It is impolite to ask about someone’s salary but many people irrespective of their rapport or relationship they tend to ask this question. Asking about salary or business income will make people feel uncomfortable. If you have a good relationship with the person then they will not hesitate to answer your question. Your idea might be to know and understand the financial situation of the person but asking such a direct question will not create a good impression. It is better to avoid such questions and even if someone asks you such a question just avoid answering the question unless you are comfortable with the person.
7. Pay debts on time
Paying debts on time is a very good habit and it will build a healthy relationship. If you have borrowed money, you must repay the debt on time as per the schedule. If you are unable to pay the borrowed money on time, inform the lender prior so that they will not keep waiting for your payment. Even if the person is your friend, relative or colleague do not take them for granted and avoid communication. Money is equally important for everyone and everyone has their own financial aspirations.
8. Do not feel obligated to lend money
Unless you are into the business of money lending, do not always lend money to friends and relatives. Lending money on a regular basis with the intention to get financial benefits will create rifts in your relationships someday. On the other hand, some people do not lend money to anyone. If you follow this principle then without affecting your relationships clear your intention that you will not be lending money. Sometimes saying no is better than keeping someone in a dilemma. You can say that you are saving money for some financial goals in your life.
9. Don’t always teach financial lessons
You might have a good intention to help others but sometimes it is better to avoid teaching financial lessons all the time. Everyone is intelligent and has been doing financial dealings since childhood. If you always go on to teach financial lessons to others when they are not willing to listen to you it will affect your relationships. If someone asks you for any information only then teach them about financial lessons that you have learned in your life.
10. Spend wisely
Prepare a monthly budget and follow it rigorously. Allocate funds amount to each monthly expense and pay accordingly. Use cash when you are going out shopping. It will psychologically make you spend less. When you get your income first save money and then spend the remaining money for the month. Follow this rule, you will not only save money but also have a grip on your financial matters.
Take away
It is generally impolite to ask any questions related to salary income unless you know the person well. If you have asked any such questions the receiver would have felt uncomfortable. Sometimes we do not notice how simply we ask difficult questions related to finance and put the other person in an awkward situation. If you follow these good manners techniques you can avoid embarrassing situations and make people around you comfortable and enjoy being with them.
About the author
Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.
