How to Handle Money Issues in Relationships: FAQ

Do you not know how to handle money issues in relationships? From choosing where to go on dates to splitting a mortgage, there are more financial decisions in relationships than you might expect. If you are curious about when to have money conversations with your partner, how to deal with different spending habits, finding common ground about financial choices and more, keep reading our article to get your answers!

When is a good time to discuss money issues in relationships?

Anytime is a good time to talk to your partner about money is a good time, unless you are feeling upset. If you feel frustrated over their spending habits, take your time to cool your emotions down so you can have a mature and constructive conversation instead of blaming without reaching a solution.

What are some barriers you might face about discussing financial decisions?

Lack of financial literacy is one of the biggest barriers to handling money issues in relationships. Without not knowing what financial aspects to consider in a relationship, couples can find themselves confused or negligent about important financial conflicts they might be facing.

In addition to this lack of financial awareness and literacy, feelings of vulnerability and lack of trust can also become a big barrier. You cannot reach a common decision on how to manage your financial situation with your partner if you can’t break that emotional barrier and have these financially vulnerable conversations. Once you share your financial situation with your partner, trusting them is vital to make your relationship work. If you don’t trust your partner about their spending habits, you might get the urge to control their spending which can create problems in your relationship.

How can you get over these barriers?

Our Solution: Have a you, me and we budget!

To avoid these conflicts, we recommend you and your partner to create a you, me and we budget that involves your financial goals as individuals and a couple. You and your partner can decide on shared goals to commit as a couple then set individual spending limits for each person to have some financial freedom while committing to their limit. Whether you and your partner is a saver or a spender, setting these budgets can help you align your behaviour with your goals.

How can couples stick to their financial goals?

Having scheduled annual dates to have money conversations can help you and your partner to stay on track with your commitment towards personal and couple financial goals. Discussing your individual goals with your partner is as important as discussing your shared goals because it provides a bigger picture of your financial situation as a couple. Retiring at different times, differences in spending, ways you want to raise and save up for your children are important items to include in your discussions.

Should you align assets strategically as a couple?

You and your partner might have different outlooks on how much control you want over your assets, which might make it difficult to decide whether you should join or separate your individual assets. For couples who want to pay less tax and administrative costs, we recommend a strategic plan that aligns your assets as a couple so that you have one cohesive financial plan that takes everything into account.  Although planning for assets in the future as an individual may not be ideal, some couples get a great mental benefit from keeping their assets separate.

How do you approach changing your mind about financial choices?

If you aren’t happy with your current approach to finances or have changed your mind about some goals, you are free to do so! Maybe you have changed your mind about the financial goals and habits you want to work on.  We recommend you openly share your concerns with them so they can understand better understanding of your point of view. In contrast, if you recognize you are avoiding dealing with a financial issue that relates to your partner, the best approach is to openly share your opinions with them instead of beating around the bush. With open communication, you can negotiate with your partner and enlist their support as you work together to co-create the financial future you want to build together.

How can I start with a financial plan?

Talking to a financial planner is a great way to find common ground on financial priorities. Keep in mind financial planners can help you to confront sensitive financial matters that can weigh on your relationship as a couple if they are not addressed. As a financial expert, a CFP can help you understand your financial situation and identify financial opportunities for you to reach your me, you and we goals in ways you might not be able to identify on your own. If you want to get started with a financial plan as a couple, book your complimentary 30-minute financial planning session with our team! We are here to help you on your financial journey as you build your financial fortune as a couple!

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