Although some married couples want to share everything, smart financial planning dictates that you do not have to, and, in many cases should not, put all of your money in a single account.
Money is one of the top sources of conflict in marriage. To guide against this, it is important that each partner is up-to-date on the family finances and participates equally.
It is also crucial to know each other’s earnings, net worth, money habits, and financial beliefs. Couples may do better to have candid conversation about what their financial goals are before merging any aspect of their finances.
Make known your concerns, how you believe money should be managed. If you defer all financial decisions and tasks to your partner, remember that you still need to stay involved so you know what is going on.
Co-operation and autonomy
Arrange your joint finances in a manner that works best for you, but be open-minded about changing tactics if you find that your setup for handling money is not working.
After all, you can have both co-operation and autonomy in your financial marriage. Allowing your partner to maintain financial independence is not a sign of distrust.
If anything, it demonstrates your trust in that person to not keep secrets about finances and to contribute responsibly to your financial life together.
The sense of autonomy in your financial planning also fosters self-confidence. That feeling of control over your own money is critical.
However, operating a joint account to take care of certain family expenses is highly recommended if you must move forward together as a team on critical issues like house ownership, et cetera.
Save together and do not keep secrets. This is the most important key to financial success as a couple. Part of your financial life together must be saving. Make a plan for building an emergency fund and retirement accounts for each spouse. If you have children, discuss whether and how you plan to help them pay for higher education.
For potential life partners, the following suggestions by Forbes.com might help you take appropriate decision before tying the knot.
First, determine own money beliefs
Make up your mind about what you want and need financially from a partner. Do you care if someone’s net worth is much higher or lower than yours? What lifestyle are you comfortable with?
Self-disclosure
Take steps to make appropriate self-disclosure about your earnings, long-term financial goals or your beliefs about saving or spending. Take note of your partner’s reaction; if he or she does not disclose in turn, or seems uncomfortable with the conversation, or has beliefs or money habits much different from yours.
Observe financial habits
Are there any patterns around spending that seem to indicate either overspending or excessive frugality? Does the home show signs of hoarding or stingy disposition? Does the lifestyle seem more lavish than the typical earnings in their career field would support?
Notice talks about saving or spending. Do they seem worried about money or reluctant to spend it even on basic needs? Do they seem angry about money or resentful of successful people? Do they boast about financial successes, things they own, or get-rich-quick schemes?
Initiate money questions
The long-term health of your relationship is important which is why you should initiate the money questions. Talk frankly about debt, spending, saving for retirement, and each other’s expectations around lifestyles and careers.
Being the one to initiate that difficult money conversation does not mean you are cold-hearted, unromantic or greedy. It simply means you recognise that money is too important a topic to ignore.
