The Money Talk: 5 Ways to Improve Your Finances with Your Significant Other
Finances are a very intimate part of a relationship, which can lead to many issues if not handled appropriately. Each partner needs to feel safe and secure with each other before they can truly trust that their partner has their back. A lack of communication around financial topics can lead one to feel criticized, shut-out, alone, and disconnected from their partner– leading to unhappy couples. If couples take that risk and open up emotionally to their partners, this will lead to the intimate conversation of finances, which is crucial to both parties’ sense of security. Are you ready to take that risk?
- Combine accounts effectively for your relationship.
There are many ways that couples choose to divide their finances and there is no correct answer; however, you must make sure that what you implement works for your relationship. A popular approach is to have each person retain a personal checking account paired with a joint account that pays mutual expenses. Other couples choose to have everything joint or separate. Regardless of how you structure it, make sure to think of your relationship as a TEAM and ensure both people have access to living the same lifestyle.
- Invest in your relationship.
Make sure you have budgeted money for fun things with your spouse like regular date nights, vacations, etc. This might sound insignificant but really goes a long way when maintaining a long-term relationship.
- Set boundaries.
Talk with your significant other about what are acceptable boundaries with spending. Set a specific dollar amount that you both feel would need to be discussed together before moving forward on a purchase or expenditure. If this boundary is broken, it must be addressed immediately.
- Assign duties.
Make sure that there is someone responsible for various aspects of the financial situation. This can include paying bills on time, maintaining budget, savings, paying loans or mortgage, etc. Boundaries must be set prior to assigning duties to avoid conflict.
- Have proper life insurance in place.
This is not something people typically think about but can definitely have an impact on a relationship especially when there is an income discrepancy and/or children involved. Make sure that you have enough life insurance in place such that your significant other would be able to maintain their lifestyle if you were no longer there to provide for them.
Michael is a registered representative and investment advisor representative of CRI Securities, LLC and Securian Financial Services, Inc. | North Star Consultants, Inc. Insurance Products and Services | CRI Securities, LLC Securities, Investments and Investment Advisory Services | Securian Financial Services, Inc., Variable Products, Securities and Investment Advisory Services | North Star Resource Group offers securities and investment advisory services through CRI Securities, LLC and Securian Financial Services, Inc. Members FINRA/SIPC. CRI Securities, LLC is affiliated with Securian Financial Services, Inc. and North Star Resource Group. North Star Resource Group is not affiliated with Securian Financial Services, Inc. North Star Resource Group is independently owned and operated. | 2387527/DOFU 1-2019