Just 43% of Americans state that they are extremely or very financially compatible with their partner, according to CNBC. However, 32% don’t believe they are very financially compatible with their spouse. While money might not be much of an issue at the start of your relationship, it can have detrimental effects down the line. College loans and financial problems contribute to more than one-third of divorces, a report from Student Loan Hub reveals. Therefore, when it comes to settling down with your partner, it’s essential that you’re both on the same financial page.
Make money talk ‘the norm’
Research suggests that the key to a successful relationship is to openly discuss money. The State of Finances in the American Household survey reports that 94% of individuals who class their marriage as “great” share their money dreams with their spouse. In comparison, just 45% of those who say their marriage is “okay” or “in crisis” discuss their financial dreams. Therefore, by revealing your earnings, your expenses, savings and debt at the start of your relationship, you’re making it clear that money isn’t a taboo subject. This will encourage your spouse to do the same and before long it will be normal to chat about money on a casual basis. As a result, the long-term potential of your partnership will be much more prosperous.
Tackle debt together
When one partner has debt and the other doesn’t, it can put significant strain on a relationship. However, 35% of debtors say they’re embarrassed to admit how much cash they owe, which often leaves them taking on the burden alone. While it’s unfair to rely on your partner to financially help you with your personal or business debt, they can be a great source of emotional support. This top bankruptcy attorney in Scottsdale advises that “When you decide that business bankruptcy is your only option, a lot is at stake – including your personal financial health.” Therefore, if you’re the partner in debt, ensure you discuss your feelings with your other half. Likewise, as the debt-free party, it’s essential for your relationship that you’re a pillar of support.
Have a joint checking account
28% of millennial couples are unaware of how much their spouse makes, states a report from the Bank of America. Meanwhile, one-third of individuals say they’ve hidden a purchase from their spouse. While keeping some cash separate for personal expenses and luxuries, such as beauty treatments or fitness classes can be beneficial, it’s wise to have a joint checking account for your main expenses. By committing to a joint account, you’re pledging that both parties are financially responsible for your bills. This demonstrates that your partnership is equal and that you’ll tackle monetary highs and lows together.
Money can make or break a relationship. Therefore, it’s crucial that it is discussed from the onset. By sharing your financial situation, managing debt together and opening a joint checking account, your relationship will be stronger.