They say money isn’t everything. While that may be true, pretty much everything today needs money. To live a well-rounded life, areas like health, relationships, and family are essential, and they often have a price tag attached.
In fact, financial issues are a huge contributor to divorces across the globe. A recent survey indicates that financial disputes rank as the second major cause of divorce, following closely behind infidelity.
Money talks with your spouse might be tricky, but if you are thinking of taking things to the next level—marriage or cohabiting—then you must take a step toward creating a financial plan together!
Tips to Start the “Money Talk” With Your Partner
Once you find the differences, you can easily clarify financial matters with your partner. Here is a little head start:
Start the Conversation Early
Taking the first step is often the hardest, especially concerning topics as personal as finances. However, initiating this conversation early lays the groundwork for an open, transparent, and trusting financial relationship with your partner. It ensures both parties are on the same page from the outset.
While discussing, you must be transparent about your income, savings, investments, debts, and expenses (individual and combined). It could include:
● rental income
● utilities
● transportation
● food
● insurance
● medical/health
● entertainment/fun
● household goods/supplies
● and more
Talk About It With the Small and Big Purchases
Every purchase, be it small or big, needs to be filtered through these criteria. Thinking of buying a fancy coffee machine? Or planning an exotic vacation? Both have a place in your financial roadmap.
Being S.M.A.R.T. about your goals helps frame these decisions. This approach ensures every financial goal or purchase is:
● Specific: Goals should be clearly defined. For example, “We want a studio apartment in New York.”
● Measurable: The formula to achieving your goal.
● Achievable: The goal is within your financial means.
● Realistic: The goal makes sense.
● Time-based: The goal could be either short or long-term.
Acknowledge the Emotions, Especially When Teaching Kids
While complex on their own, financial discussions gain an added layer of intricacy when considering strategies to talk to your kids about money. It’s not solely about the numbers. There are emotions tied to these financial matters. Address these feelings head-on in conversations with your partner and when guiding your children.
No Judge Zone When Discussing It
Embracing a “no-judge zone” from the get-go ensures that financial conversations are rooted in mutual respect and understanding. You can more effectively track progress and manage expenses by keeping an open mind and a non-judgmental attitude. Start with weekly budgeting sessions. Then, as you both get a better grasp on the process, these can taper to monthly catch-ups. The beauty is as you both become more adept at budgeting, these meetings will naturally become more streamlined and productive.
Talk to an Advisor
Money is a touchy topic to talk about. There’s a lot of weighing and measuring involved, but as long as you and your spouse find common ground, you can handle your finances well.
If you feel these discussions are too difficult for you to articulate well to your partner, get help from a third party. It could be anyone from your family and friends to a financial advisor. The key is to work together as a team and achieve what you both want.