A couple conversing. Photo/www.osundefender.com
Money, it’s a topic so personal we have trouble talking about it with our significant others. Marital conflicts about money are more pervasive, problematic, and recurrent, and remained unresolved. In order to avoid that pitfall, you must prioritize open and honest communication and create good financial habits as a couple.
Couples who are "good with money" know that proactively managing your household budget is good for your bank account and relationship. They've overcome the pitfalls of debt, navigated setting up joint banking accounts, and figured out their tax situations.
It's never too early to build healthy communication around money. Early on in a relationship, start talking about money before you need to. You can do this by discussing your ideal budget for a weekend away or by sharing what you plan to do with a bonus check. Raising awareness at an early point, even prior to partners combining their finances.
As a couple, try to answer questions about major future expenses: luxury car or used car? Private school or public school? House in the suburbs or city condo? If you communicate and compromise on the big things up front, you'll avoid blowups and misunderstandings later. There's usually room for competing goals, as long as you plan ahead.
In addition to setting your financial goals, you need to discuss what obstacles will get in the way of achieving them. Be honest about your financial "flaws" as soon as you can. These can include credit card debt, student loan payments, or a bad credit score.
Consider flipping the script on your financial conversations. Instead of talking about how much you spend each month, talk out how much you save. It frames things in a positive light.
It's a good idea to set up a joint account for joint expenses. Just don't assume you will go 50-50 into the account. This arrangement will help ease tensions that arise when one person feels overwhelmed by higher expenses because they make less money. As your relationship progresses, you may consider blending all your accounts. But the transparent and fair approach you took while keeping things semi-separate will serve you well into the future.