Building a strong financial partnership with money conversations
March 24, 2023
Being able to talk about money with your partner can help both of you plan for the future, and while money may become a source of stress and conflict in a relationship, it can also become a source of stability and security.
Effective conversations require the desire to share, learn and grow together; and forming a strong mutual financial bond can support a happy, healthy long-term partnership.
Below are a few tips to help you build a strong financial partnership with your significant other.
Try and communicate openly and honestly
One of the first steps to building a strong financial partnership is to try and have an open and honest conversation about money. This could include talking about your money goals, income, expenses, and any debts or savings that you have.
Being honest builds trust and it’s important that you’re upfront about any financial issues or concerns. Collaborating to find solutions for these problems builds a stronger sense of security for you and your partner.
Open communication about your finances becomes especially important when your relationship begins to go through more phases in life, like marriage, parenthood, sickness and health, and retirement and old age. If you plan your finances together you will be better equipped to deal with the ups and downs of life together as a team.
Be open to learning about money
Money can be complex and overwhelming. But it can be helpful to set some time aside and learning about it. This could include learning about budgeting, saving, investing and all the other aspects of personal finance.
By being open to learning about money, you'll be better equipped to make smart financial decisions and you'll be better able to build a strong financial partnership with your significant other.
Try and plan for unexpected expenses
Unexpected expenses can happen at any time and they can be a major source of stress. To avoid this, you and your partner could talk about having an emergency savings fund or a budget that includes a small amount of money set aside for unexpected expenses.
By having a plan in place, you'll be better prepared to handle unexpected expenses, you'll be less likely to argue about money when they do happen, and you’ll both have peace of mind as you know that you can cope financially should a worst-case scenario happen.
Be transparent about your boundaries
As a couple, you need to be open and honest about where your money is going and be willing to discuss any purchases you make. Whether you have a separate bank account, a joint account or a combination of the two you should always be transparent about your spending.
Separate accounts allow for more independence and freedom but can result in an unequal distribution of expenses. Joint bank accounts are beneficial for budgeting together, but only if both partners are equally respectful. There’s no right or wrong answer when it comes to joint bank accounts, it’s about finding what works for you both.
Set financial goals together
Setting financial goals together is a great way to start a conversation about money and build on your financial partnership. This can include short-term goals like saving for a holiday or paying off credit card debt, as well as long-term goals like saving for a down payment on a house or planning for retirement.
You and your partner may need to discuss what you want to prioritise. Plus, you need to respect each other’s wishes so that you’re both committed to working towards them. This may involve some compromise, but it shouldn't make either of you unhappy.
Career and family planning
If you and your partner are talking about starting a family, then you need to discuss the financial implications of this upfront. Children bring plenty of joy, but they do cost money and you need to plan ahead for this.
Discuss as much as you can from medical costs to education, and whether you have support from whānau who can help with babysitting, or whether you’ll need to pay for full-time childcare. It’s important to discuss who will carry the heavier financial load, especially if one of you earns a far larger income.
Money matters in every relationship
Doing life with the person you love is a wonderful way to go through it. But for this to be successful, and for both of you to prosper, you need to be able to talk about money.
By working together and following these tips, you can build a strong financial partnership that will last for many years to come.
For more tools and tips check out ⬇️
Healthy Financial Relationships toolkit
Find all the tools you need to have healthy conversations about money with your partner
Written by Kristie Wright
Author:
Kristie Wright
Kristie Wright is an experienced freelance writer who covers topics on logistics, finance and management.
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