When it comes to talking about money matters with your significant other, it can get a little tricky. But there’s a way to have real talk about money without feeling stressed, embarrassed, or emotional.
Every relationship is different. Building a good system that will help you manage your finances as a couple takes work. But there are surefire ways to take care of your finances without worrying about your relationship imploding anytime.
Be honest about your financial status
It may be uncomfortable or even stressful to share your financial history or financial status with your partner.
Even if you’re madly in love with each other, there’s still this fear at the back of your mind that you will be judged when your partner discovers your unhealthy spending habits.
You fear that they’ll have a change of heart when they see how huge your debts are.
But if you’ll be sharing a life together, it’s best to lay it all on the table so that you can forge ahead and deal with your finances as a team.
Let your partner know about your debts, be it credit card or personal loans. Share your money goals and what your spending habits are like. This way, there will be no unpleasant or unwanted surprises that will shock you in the future.
If your credit card is always maxed out because you like expensive things, you’ll need to share this with your partner. Remember that a healthy relationship welcomes the good as well as the bad.
Ask the important questions
Not everyone has the same money values. This is why talking about money will help you manage it as a couple.
How do you and your partner feel about money, and who are your financial role models? Do you like to pay in cash or with credit cards? Is there anything about personal finance and investments that you both would like to learn to achieve your financial goals?
Once you’ve asked these questions, you can proceed to how you’re currently managing your money together. How much money do you make with your job or business? How much are you spending? How much money goes to monthly bills and to personal savings?
Remember that if something affects both of your financial health, it’s something that you should discuss.
Talk about your shared financial goals
Whether it’s a short-term goal of clearing credit card debts or a long-term goal of purchasing a house, talking about your shared financial goals will make you feel excited and optimistic about the future.
So go ahead and talk about your dreams of retiring at 40, or changing to a creative career, or living abroad. Putting them out there will allow you and your partner to work together towards them. Not only will you be strengthening your relationship but you will also achieve your goals sooner rather than later.
Have a joint and a separate individual account
Joint accounts allow access for you and your partner to your money when the need arises. You can deposit, withdraw or pay bills using the joint account easily.
And with joint accounts, you are also decreasing your risk of financial shocks because you can see the coming and goings of your money. This also saves you the hassle of balancing your checkbook each month.
It’s a good tool to save up for bigger expenses like vacations, the kids’ tuition, down payment for your home, or even your retirement. It will give you peace of mind knowing that your essentials are covered.
But having a joint account does not mean that you’re not allowed to have a separate savings account anymore. Having your own savings means you can still enjoy the freedom of divided finances. You can still have a sense of control over your own money without having to worry about what your partner will say.
Share financial responsibilities
When you and your partner equally share the financial load, it can help reduce unexpected, and oftentimes unpleasant, financial surprises.
You know which one is in charge of paying off the utilities or the rent. As a result, you can better budget your money knowing that other expenses will be taken care of by your partner. There’s more breathing room, and you can avoid arguments over money.
Managing your finances is no easy task. But as long as you can communicate openly and honestly with your partner, it doesn’t need to be a pain at all.
Work on meeting your expectations when it comes to handling money and prevent the problems before they happen. It’s a learning process for the both of you, but you’ll get better at it over time!
It’s important that you and your partner are on the same page when it comes to your finances. When you manage your money well as a couple, you are also successfully sharing control over your financial security and your future.
How do you discuss money with your partner? Do you have some tried and tested tips? Let us know in the comments!