Money is the leading cause of disagreements in many relationships. Sharing financial responsibilities, agreeing on spending habits, working to pay down excessive debt and saving for common goals can lead to stress and resentment. Fortunately, there are many ways to prevent money from ruining an otherwise healthy relationship. Money issues vary by the couple, but some of the most common hurdles include:
Identical spending habits. To one partner a purchased item can be considered reasonable, while the other might think it an unnecessary indulgence.
Income levels. A sticky topic for couples, especially when one partner is earning a lot more than the other.
Past and current debts. This can have a negative impact on a relationship.
Savings. Live for today, or pinch pennies? Couples don’t always agree on which of these strategies.
Disagreements over finances are inevitable, but you can take steps to minimize the impact on your relationship with these 5 strategies:
1) Divide financial responsibilities upfront. A clear delineation of money responsibilities will help partners avoid confusion about their roles. When both partners know who is in charge of paying the bills, overseeing the budget or working on investments, there’s less room for arguments and tension.
2) Open a joint account for shared goals. An account opened with the sole purpose of holding money for household bills or for funding a long-term goal can help smooth tensions. You may also want to open solo accounts for each partner to be used as “just for me” money. This will allow for controlled, but autonomous spending.
3) Schedule weekly money talks. During these conversations, cover topics like the monthly budget, big-ticket items you’ve recently purchased or plan on purchasing soon, outstanding bills that need to be paid and any other money topics you’d like to discuss with your partner.
4) Make financial education a family priority. A great way to prevent money fights within your family is to keep learning about personal finance yourself and teach your children financial literacy from an early age. You can use age-appropriate books, articles and podcasts to help you along. By teaching your kids about money, they will have realistic expectations, spend more responsibly and feel empowered.
5) Set clear financial goals. Create shared money goals for the entire family to help everyone stay on budget and remember to save. The long-term goal can be anything from saving up for a house to funding a dream family vacation.
For help in your pursuing your long terms goals, NIHFCU Wealth Advisors is available to consult on investment strategies, insurance solutions, and retirement & college planning. Discover the services we offer here, give us a call or request a complimentary, no-obligation consultation today.
