Relationships and Money — now that’s a big deal! We all know money matters, but does it matter as much when it comes to your partner of choice? It should! Because behind those rose-tinted glasses lies your long-standing relationship with money. How you and your partner choose to spend, save, invest and plan together, influences your relationship, peace of mind, and future financial standing.
Let’s talk money, honey
Normalise talking about money with your partner. This is often awkward and uncomfortable but is essential to build trust. Set up a periodic date with finances being the focal point on the agenda. Talk about expenses, investments, future financial goals, insurance and debt.
Set financial goals, personal and couple
While you may have joint goals as a couple (e.g. vacations every year, or buying a home together), create your personal goals as well. We recommend having “yours”, “mine” and “ours” as buckets for your financial goals, investments and assets. With this structure in place, both of you are maintaining your sense of individuality with your own accounts and savings, but you are also building finances together, as a couple, therefore, developing that couple’s identity with your joint savings and joint assets.
Agree on money values
Often, things that seem trivial – like lending money to a friend – may end up becoming an issue amongst couples. As part of your money talk, address basic values around money. Do you need to help out other family members financially? How will you talk to kids about money? If a career break may be on the cards for either of you, could it be a problem financially? These are a few topics to consider.
Money may not be the first thing you think of in a relationship, but it surely is a critical part of it. If you think planning all this is cumbersome, consider this. If you don’t make financial plans for yourself, you will have to live by the plans that are made for you by somebody else whether you like it or not.
by, Hena Mehta, CEO and Co-founder of Basis