Many relationship issues are caused by financial stress. Disagreement about money is one of the top reasons for contention in relationships and divorce. This has led to more couples splitting up accounts and expenses. Some say it’s non-negotiable to combine finances. However, studies show that couples are happier when they combine their accounts.
The key to success is not splitting or combining. It is communication and planning. Let’s explore some healthy money habits to practice in our relationships.
- Practice Financial Transparency
Getting off on the right foot in your relationship is essential, especially with money. Be transparent about your values, goals, feelings, and perspectives toward money. If you have never had transparency, it’s not too late.
How do you view money? What are your feelings toward debt? What do you want your finances to accomplish? These can be some beginning questions to get started. - Define Roles
The saying “opposites attract” rings true with finances. One typically likes to save, while the other enjoys spending. One prioritizes enjoyment, and the other prefers security. We are meant to balance each other out.
If you’re only thinking about spending, you could be risking your financial success and your partner’s stress levels. If you always scrimp, your partner may become disgruntled. The sooner you identify how you work together, the quicker you can agree. - Follow Tips for Splitting Finances
If you plan to split up finances, let’s think of some ways other than just 50/50.
Many couples have an income disparity. Consider splitting things in proportion to the amount of income. A 70/30 or 60/40 split of the expenses may work better.
Another way is to have several accounts: Yours, Mine, and Ours. Many couples like to view it this way, as it splits expenses and gives each their dedicated dollar amount to do what they wish. - Communicate Often
We all have our quirky money habits. The most important piece of this entire puzzle is to keep communication as the main goal. Talk about these topics and address money issues along the way. Do it often. Making sure you are on the same page as your partner keeps you heading in the same direction. When situations come up, you can tackle them together head-on.
Life Kit (A. Tagle, Interviewer). (n.d.). NPR. https://podcasts.apple.com/ca/podcast/healthy-money-habits-for-couples/id1461493560?i=1000659059775
Listen to a deep dive into these four habits on the Power Up Wealth podcast.
