Talking about money, wages, debts, credit scores, assets and, most importantly, your financial goals and aspirations, is essential for a couple’s financial control. Sharing information reduces stress, and increases the confidence level in your partner; at their Couples & Money studio in June 2015, TD Bank reported that couples who talk about money at least once a week feel happier in their relationship.
In your couple’s financial control take into account these tips, and remember that a little planning and transparency can be the difference in the future of your romantic life.
# 1 Talk about money
Talking about money shouldn’t be hard, less so between couples: being transparent in terms of expenses, debts and financial interests is essential in couple’s financial control. About 5% of people in general keep certain financial issues secret: savings accounts, private expenses or debts. Not being honest with something as important as money not only decreases the trust in your partner and damages your relationship, but also causes imbalances in shared annual budgets.
# 2 Be clear from the beginning
Sharing finances with someone implies a fairly high level of commitment; from the first moment you decide to live as a couple, you must clarify how financial control will be shaped. Take into consideration the situation of each one of you, and your economic capacities, and define to what extent you will share assets and incomes.
#Together but apart
The best financial relations between couples are those in which there are joint accounts and interests, without neglecting personal financial development. Setting short and medium term goals, and the levels at which each one will contribute is elementary in couple’s financial control. A joint savings account, independent of the personal accounts of both partners, is ideal for working on common goals.
# 6 Treat each other as equals
In a couple there is always going to be someone who has a higher income, and although it can be a sensitive issue, in financial control both parties must be considered equal. You should never make financial decisions without consulting with your partner. Deciding to share your financial life means sharing all the decisions. Using money as a means of power and control can only end in confrontations and wear off your romantic relationships.
# 7 Have empathy and flexibility
Having a relationship implies trying to understand the other, despite being complicated sometimes. When it comes to money, everyone has different habits; in your financial planning always include a fund for personal fun. Whether it’s for shoes or video games, our partners are always going to spend money on things that don’t seem important to us, and questioning or shaming these purchases can deteriorate the relationship, both financially and personally.
Spending your life with someone is a very important decision, and sharing personal aspects of your daily life, such as your finances, is a monumental commitment.
Long-term relationships are built on daily habits and efforts; to have the best opportunity to grow with your partner, be transparent in your couple’s financial control. Incorporate these tips into your financial practices and frequently review long-term financial goals; the only way to grow together is to know that you are going in the same direction.