Advertisement
savings

3 Tips for Coupling Finances

The more you communicate with your partner, the better your chances of living happily ever after.

Studies show that regardless of a person’s income level, fights about money are among the biggest frictions in a marriage and top contributors to divorce. People often see financial success differently; however, there are things you can do to ensure that friction is minimized, so that you can spend more time doing the things you love and building a life together. Whether you just embarked on a lifelong journey with your significant other, or plan on saying your “I do’s” in the forthcoming years, below are my financial recommendations for a happier union.

Communication Is Key. I’ve been in this industry for years, and yet I’m still surprised by how many people don’t discuss finances with their partners. While some simply prefer not to talk about money, others just don’t know how to go about it. It’s important to note, however, that keeping the financial lines of communication open is essential for success.

Advertisement - Article continues below

There are plenty of ways to communicate about money. For one, having an ongoing financial check-up on the calendar—whether it’s weekly, monthly or even semi-annually—is a great way to touch base and check on current fiscal affairs. In our house, we call it a financial round table, where my wife and I sit down together and discuss our financial situation. We identify goals and get a clear sense of where we are financially and where we want to be in a month’s time or in five years. Doing so can go a long way to ensure both people are working toward the same goals and minimize any spending and savings miscommunication.

Advertisement
Advertisement - Article continues below

Couples That Save Together, Stay Together. In addition to hosting a recurring financial round table, I recommend having a budget in place and a plan for saving as a couple. Even if your idea of saving and your contributions may be different from your partner’s, putting a plan together on how to budget your expenses and save toward common goals can minimize misunderstandings and, in turn, conflicts over money.

Advertisement - Article continues below

Creating a family budget starts with aggregating your revenues and writing down every possible expense, including a line item for savings, allowing for miscellaneous items that may come up unexpectedly. It doesn’t matter if you are allocating $10 or $1,000 to savings monthly as a start—the important thing is that you’re saving and growing those contributions together.

Also, if you have big plans ahead, such as a new baby, a trip or continued education, you can create an additional savings account with that purpose in mind. That way you won’t be dipping into your core savings and maximize the interest on those funds.

Go Mobile. Not everyone is born with a knack for managing finances, and even those who are often find themselves too busy with life to handle day-to-day money moves. The great news is, there are now a number of easy-to-use, on-the-go tools that can help with personal finances. From mobile banking to financial apps that organize your cash flow or automatically move money into your savings account, it’s no longer necessary to invest a significant amount of time and energy to understand your current financial well-being.

It’s a lot easier to ignore your personal finances then tackle them head-on, but as you start sharing your life with someone, it’s best to set yourself up for success from the beginning. Your finances are a big part of your life, and as you take that next step with your soon-to-be husband or wife, know that the more you communicate and work toward the same financial goals, the less the risk of misunderstanding and the greater chance for a happy union—personally and financially.

QUIZ: Are You a Money-Savvy Couple?

Taylor Schulte, CFP® is founder and CEO of Define Financial, a San Diego-based fee-only firm. He is passionate about helping clients accumulate wealth and plan for retirement.

About the Author

Taylor Schulte, CFP

Founder and CEO, Define Financial

Taylor Schulte, CFP®, is founder and CEO of Define Financial, a fee-only wealth management firm in San Diego. In addition, Schulte hosts The Stay Wealthy Retirement Podcast, teaching people how to reduce taxes, invest smarter, and make work optional. He has been recognized as a top 40 Under 40 adviser by InvestmentNews and one of the top 100 most influential advisers by Investopedia.

Advertisement

Most Popular

What Are the Income Tax Brackets for 2020 vs. 2019?
tax brackets

What Are the Income Tax Brackets for 2020 vs. 2019?

The IRS unveiled the 2020 tax brackets, and it's never too early to start planning to minimize your future tax bill.
June 20, 2020
Tax Changes and Key Amounts for the 2020 Tax Year
tax law

Tax Changes and Key Amounts for the 2020 Tax Year

Americans are facing a long list of tax changes for the 2020 tax year...and it's never too early to start thinking about next year's return.
June 22, 2020
Find a Great Place to Retire
happy retirement

Find a Great Place to Retire

Our cities provide plenty of space to spread out without skimping on health care or other amenities.
July 2, 2020

Recommended

For Financially Responsible Kids, Do NOT Do These 3 Things
family savings

For Financially Responsible Kids, Do NOT Do These 3 Things

The key to putting your kids on the right financial path can be boiled down into one sentence.
July 1, 2020
10 Tax Breaks for the Middle Class
tax deductions

10 Tax Breaks for the Middle Class

Tax breaks aren't just for the rich. There are plenty of them that are only available to middle- and low-income Americans.
June 30, 2020
Find the Best Money Market for You
money market accounts

Find the Best Money Market for You

Whether you choose a money market fund or account largely depends on the money's purpose.
June 24, 2020
The Answers to More RMD Questions
retirement

The Answers to More RMD Questions

The CARES Act made 2020 required minimum distributions optional. But what are your next moves?
June 12, 2020