Avoiding awkward conversations about money costs Brits nearly £1,600 a year, research has found.
A poll of 2,000 adults revealed 46 per cent had made a financial decision on their own they later regretted.
As a result, they estimated they have lost an average of just over £394 across the last three months - totting up to a potential £1,578 a year.
A third (32 per cent) have gone on holidays or attended stag or hen do's they couldn’t really afford to avoid embarrassment or disappointing others, spending an average of £543 on these types of events in the last six months.
And 21 per cent have made a purchase using finance or credit without fully understanding the total cost, including interest and fees, increasing their final bill by £250 on average.
It also emerged 37 per cent have shied away from asking questions about their pensions because they feel too complicated to discuss.
Embarrassment (20 per cent) and fear of being judged (20 per cent) are the most common reasons people avoid talking about money.
The study was commissioned by Nest [www.nestpensions.org.uk/costofsilence], which has partnered with financial psychotherapist Vicky Reynal to talk about what has been dubbed ‘cost of silence’, in a bid to encourage Brits to talk about income and understand their finances.
Vicky Reynal said: “Many of us know that we should ask more questions about money.
“But our inner critic convinces us that not knowing is a personal failing, rather than something almost everyone struggles with.
“So, to avoid the discomfort and protect our own self-image, we nod along, sign on the dotted line or say yes to things we can’t afford.
“But this ends up costing us far more, financially and emotionally, than the temporary awkwardness of asking and talking about it.
“A good place to start is with a specific question rather than a big confession.
“Asking a friend, ‘how did you find your energy deal?’ feels far less daunting than talking about your finances as a whole.”
This silence about money extends to those closest to us, as 22 per cent feel uneasy discussing earnings with family, while 17 per cent feel the same with their close friends and 12 per cent with their partner.
As 40 per cent admitted they worry about their savings more than they let on to others.
More than half (54 per cent) of UK adults would be more likely to talk about money if they knew it could help them avoid costly mistakes, according to research by OnePoll.
Access to clear, jargon-free financial information (53 per cent) and conversation starters (39 per cent), as well as seeing people talk more openly about their finances (41 per cent), would help people feel more comfortable discussing money.
It also emerged 34 per cent have saved earnings or avoided a financial mistake after speaking to someone first.
Of those, 51 per cent felt more confident in their choice after discussing it, while 41 per cent felt relieved and more in control of their money.
Nearly a third (32 per cent) found talking about money was much easier than they expected, and a quarter (25 per cent) wished they had brought it up sooner.
Deborah Perkins, member proposition director at Nest Pensions, said: “Money is still a huge taboo for us Brits, and while this silence can feel like the easy option in the moment, it comes at a cost, sometimes immediately and sometimes down the line.
“Every unasked question and avoided conversation adds up, whether that’s a purchase made without understanding the full cost or feeling too embarrassed to say no to something out of budget.
“You don’t need to have all the answers to start the conversation. Speaking to someone before making a financial decision, even just asking a question, could save you a lot of money.”
