Navigating Finances as a Couple: Top Tips for Talking Money
Money is a tricky topic to discuss for couples, but it is an essential part to understand in any relationship and should be discussed openly. Managing finances as a couple can be daunting, but with the right tips and attitude, it can be surprisingly simple. Here are the top tips for discussing money as a couple:
Set Clear Expectations
The first step to talking about money is to set up clear expectations regarding finances. Couples should discuss their long-term and immediate plans with each other and consider the following points:
- Who will be paying the bills?
- How much money both of you will be spending/saving?
- Would one of you be paying for the other’s debt?
- What kinds of purchases would require financial discussion?
- Are there any shared accounts?
It is essential to come to a mutual understanding with these topics and make sure both parties are on the same page. Setting up expectations and rules for financial discussion beforehand can prevent any misunderstandings in the future. Even if lines of communication stay mostly open, it is important to remember that these expectations are just in place for reference.
Create a Joint Financial Plan
A joint financial plan entails both partners discussing and creating a roadmap that outlines their expenses and payment methods. This plan should outline the following:
- A budget for the month
- Any planned large expenses
- Long term goals and strategies
- Emergency savings
- Debt repayment strategies
Creating a joint financial plan could help the couple make sure that the finances are used in a way that serves the partnership and keep the couple on track. This plan does not need to be exhaustive, but make sure any big ticket items, like planning for a new car, are included to maintain transparency. It also helps to create a plan that covers both the long-term and short-term objective.
Understand your Partner’s Attitude
When it comes to money, each individual in the couple may have a different attitude and opinion. It is important to understand that even if one partner may be more risk averse, the other may be more risk taking. If the couple disagrees on the financial plan, it helps to discuss both the pros and cons together. Same goes for large purchases, if the couple is researching their next car, they should look at the options together and see what both of them prefer and look out for each other’s opinion.
Have Regular Financial Check-ins
Regular money check-ins are an essential part of managing finances as a couple. Even if couples are managing the finances in separate accounts, it helps to stay on top of the financial situation by having regular check-ins. This gives the couple the chance to look back at the money plans and assess them. Furthermore, it creates a platform for the couple to discuss and bring up any new changes that will affect the other partner, for example, a new job or a salary increase.
Have Open Discussions
Open discussions and talking openly is the key to any financial success as a couple. It is important to not just talk about money as a way to divide up the responsibilities or as a blame-game. One partner should be open to listening to the other without judgment. Financial discussions should not be worrisome and should have a positive attitude.
Stay Accountable
Financial discussions should include both the partner’s individual contributions and shared responsibilities. It is important to document and keep track of who was responsible for what and when. Couples should discuss and agree on who is responsible for which bills and joint incomes, for example, investing into a joint savings account.
Respect One Another’s Financial Priorities
When it comes to money as a couple, it is essential to respect one another’s differences. When having financial discussions, the partners need to be aware that one person’s priorities may be different from the other’s. For example, one person may prioritize saving for a downpayment on a house, but the other may prioritize travel. Respecting each other’s perspectives and trying to find a balance between both of the ideas can go a long way.
Set Goals Together
The most important tip when managing finances as a couple is setting goals together and creating a strong plan to achieve them. Couples should discuss their goals together and come up with a plan to achieve them. The plan should consider both the individual and joint goals and should be both realistic and achievable. It also helps to have intermediate goals that allow the couple to measure their progress towards the final goal.
When it comes to managing finances as a couple, there are countless tips that can be applied for success. Money can be an uncomfortable topic, but discussing it openly and honestly can be an integral part in maintaining a healthy relationship. Setting up expectations, creating a joint plan, having open discussions, and setting realistic goals can all help couples achieve financial success and peace of mind.
