How to Effectively Talk About Money More Often with Your Partner

Money is tough to talk about. So tough that finances are one of the causes of breakups or divorce. At the beginning of a relationship, money is on the back burner of conversation. You go on several dates to get to know each other. You buy each other gifts to show you care for them. It isn’t until you’re committed to a long-term relationship with your partner that money conversation starts to be at the forefront of your mind. Below we discuss what financial topics you should bring up with your partner once your lives become more integrated.

What To Talk About

It’s common for couples to have a spender and a saver in the relationship. The spender would be someone who doesn’t put much thought into how much they are spending and splurge their money. The saver is the polar opposite. They save whatever they can whenever they can and sometimes they don’t know what they are saving for. Polar opposite financial mindsets are not a red flag. It may even bring balance in the way the couple views money. Other times, though, it may bubble some negative thoughts. “Spender is splurging too much” “Saver is nagging me”. This is why we suggest you bring up the topic early on in your committed relationship. There may be boundaries you weren’t aware of before or hidden debt that either of you was too scared to confess to.

Goals

When you want to bring up finances, a good starting point is discussing short-term goals. It will give both of you a general idea of what kind of spender or saver you are. Sometimes short term goals can be discussed even on the first date. While they aren’t always directly related to money at that point, you learn where their priorities are. You’ll learn the impact you have on each other’s finances. Mid-term goals are slightly different. They are a simple stepping stone to reach your long-term goals built up by your short-term goals.

Monthly Savings

Fun Items

Vacation Plans

Credit Card Debt

Emergency Funds

Wedding/Honeymoon

Retirement

Mortgage

Investments

Child Trust Funds

As you can see, setting up financial goals for yourself and your partner opens up the conversation for more important discussions. Does your partner want children? Do they want a wedding or focus on the honeymoon? How much debt do they have and do they expect you to assist them in paying it off? If you or your partner are the spending type, what is a reasonable budget to save or to spend on a monthly basis? Budgeting for goals does not mean you must never spend your money on fun things such as the latest gadgets or on a weekend trip with your friends. It means allocating enough money to allow yourselves to spend on those things without breaking the bank. It’s a smart way to save and spend.

Tips on Talking About Money

Money is a sensitive topic to many people. They feel their yearly income indicates their worth as a person. So, how do you approach discussing the topic of money?

Open Mind With Finances

An open mind means that you are listening to your partner about how they view money. It’s highly probable that they copied their parents’ financial model. The model may be completely different than yours, but it does not indicate which is better. It simply means that it works for both of you individually. There will be a time when you must discuss how to work your finances together, but, in the beginning, take their financial decisions for what they are. If their decisions are so out of sync with yours, you may need to talk to them. Maybe you’re someone who likes to go out every weekend, but because of heavy saving habits, your partner may not allocate enough funds to allow for that. The opposite may be true too. You may be spending way too much on weekend outings and don’t allocate enough to fund it properly. When it comes to a relationship, finances should be discussed and communicated.

Communication With Your Partner

We strongly advise opening all avenues of communication with your partner. Particularly the one you wish to spend your life with. That normally goes without saying, but sometimes some financial burdens or strategies are left unsaid. If you think your financial strategies are out of sync, talk to them about how to get them back on track. There’s going to be a lot of compromising and discussions about what works best for you as a couple.

Discover what your deal breakers are and what strategies you absolutely need to maintain to be happy with your financial direction. Once you’ve determined that, you’ll have a better understanding of your do’s and don’ts. Money isn’t the most important thing in the world, but it does play a vital role in decision-making processes such as retirement or house purchasing.

We Can Help!

America’s Choice Tax Relief prepares taxes and relieves you and your partner of your tax burdens. Like every relationship, taxes are different for every person. Receive a free tax consultation today to discuss the best options for you and your family.