Couples & Money – Tips for Success
Couples & Money – Tips for Success
Couples & Money – Tips for Success
Money issues are often a main source of conflict within couples. Here are some tips to help you avoid some of the biggest pitfalls when it comes to dealing with finances in a relationship.
Be open and honest about the current reality
Discuss your personal finance situation early into the relationship. Does one of you have more debt than the other? Has one saved a lot and the other not at all? Addressing these realities early on will help to identify the financial steps that are best for both of you.
Who does what
Decide who is in charge of each task in your financial life. For example, you may handle paying the bills, while your spouse does all the research when it comes to making big purchases – like an appliance or a vehicle. Clearly understanding your respective roles helps avoid conflicts and misunderstandings down the road.
To combine or not to combine
You can handle your bank accounts many ways. Some couples keep their accounts 100% separate, while others send every dollar earned to a joint account. Your approach may lie somewhere in between. Having at least one joint account for paying shared expenses such as housing and utilities provides convenience, as well as helping build a sense of shared commitment. Discuss as you go what types of expenses are considered joint and which ones are individual, such as clothing, medical expenses, gifts, etc.
On the other hand, many find value in having a discretionary bank account where they can spend without having to discuss it first with their partner. That said, keeping your spending out in the open is important for building trust.
How to split it
Decide together what is the best way to divvy up bills. Some split everything 50/50, while others divide expenses based on incomes, or by some other method. The important thing is to discuss this at the beginning and decide on an approach that works for both of you.
Discuss regularly
Set up scheduled check-in’s at regular intervals – every two weeks, once a month, etc. And make it fun by ordering your favorite take-out or enjoying a glass of wine.
Plan for the future
Discuss your future financial goals – both short term and long term. Do you want to save for a house? Have children? Retire early? Figuring out your independent futures will help to plan your joint reality.
Above all, remember that the purpose of this work is to put your shared financial future on the right path for success. Celebrate your successes in these efforts and be understanding about your failures.
Durham Tech Community, for more personal finance advice or tips, email me at chapmanl@durhamtech.edu
Larry is the Financial Coach at Durham Tech, providing individual coaching services and information to the students and employees of the Durham Tech community.