Finances for Couples: Tips for Money Management
Financial disagreements are the greatest predictor of divorce in a couple. In fact, financial issues can put a greater strain on a relationship in retirement. Tips for money management and financial communication can be an important aspect of the retirement transition.
If you haven’t already, create a household budget planner. Discuss the budget together and make sure both of you are in agreement with it. Have monthly meetings where you discuss your budget and make adjustments accordingly.
Understand each of you have a unique money personality. One of you is more likely to save and the other, spend. Don’t try to change the other, but celebrate your differences and recognize both bring value to the relationship. Make sure your budget allows for each of you to demonstrate your strength.
Create financial responsibilities for each of you. One may be responsible for paying the bills and the other for monitoring investments. Both of you should be involved in your finances and have full understanding of your money situation.
Communicate about your money situation. Don’t have secrets from your partner about finances. If there is a problem, be willing to discuss it and work together to find a solution. Also, be willing to share concerns and worries. In retirement, there are many unknowns about both the present and future.
Work together to establish you financial priorities. What are you financial goals individually and as a couple. Establish action steps that will move your toward your goals. If there are disagreements, work together collaborative to come to a mutual agreement.
Involve financial experts in your financial plan, especially if you have troubles communicating. This can be an accountant, financial planner, insurance agent and/or lawyer specializing in estate planning. Have them help you resolve differences.
Finances for couples can be challenging. Following these tips for money management will help you solve problems early on so it doesn’t destroy the marriage later.