Navigating financial interactions with proper etiquette demonstrates self-awareness, respect and consideration of others’ feelings. Whether you are splitting a bill with friends, accepting a small gesture, or discussing a large purchase, money can often lead to uncomfortable situations if not handled carefully. Money etiquette matters because when you get it wrong, you may unintentionally make others uncomfortable in social situations. Here are some practical tips for maintaining good money etiquette and avoiding those awkward moments.

Respect Privacy Around Financial Matters

While it is natural to wonder what a friend’s salary is or how much their home costs, asking could easily make them uncomfortable and lead to your own feelings of jealousy or resentment. As a rule of thumb,  avoid asking questions about someone’s wealth, income, or spending. Even asking how many acres someone owns or the cost per square foot of their may be a sensitive subject.  Likewise, refrain sharing this information yourself. If someone volunteers their own financial information, avoid probing further. Respecting privacy and boundaries when it comes to financial matters shows maturity and professionalism. If someone asks you a financial question that makes you uncomfortable, politely redirect the conversion by explaining your preference for maintaining privacy – perhaps they will leave their encounter with you a little wiser about money etiquette.

Be Clear About Expectations

A lack of communication can lead to misunderstandings in money matters. For example, if you are planning to split a bill or share the cost of an activity, clarify how it will be divided beforehand. When dining out with friends or family, it’s always helpful to decide before you order whether everyone is paying for their own meal, or if one person will cover the entire amount. Addressing expectations upfront ensures no one feels unfairly treated by unexpected expenses.

Handling Shared Expenses

When traveling with friends or family, shared expenses can become a tricky subject. Instead of waiting until the end of the trip, consider dividing the cost as you go along. Many apps and services now make it easy to split bills instantly, ensuring fairness and avoiding a difficult conversation later. If someone forgets to contribute or seems to have miscalculated their share, it’s best to address it kindly and privately rather than publicly. A simple message such as, “Hey, just a quick reminder about last week—let me know when you get a chance to send over the payment,” is a polite way to remind someone without risking embarrassment.

Appreciate Small Gestures

Though money can often be a topic of tension, small gestures, like picking up the tab for a coffee or a meal, can help build goodwill and foster positive relationships. However, it is important to offer such gestures without expecting anything in return. Avoid the trap of giving in hopes of receiving something back; genuine generosity will always be appreciated.

The basis of money etiquette is the consideration of others. By being clear about expectations, avoiding sensitive topics, and handling financial matters with tact, you can demonstrate professionalism and ensure that your financial interactions are smooth and respectful.

Published in the Victoria Advocate.

Hannah Gohmert is a CFP® professional and the Chief Compliance Officer at Keller Wealth Advisors.