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Love and Money: Financial Planning Considerations for Couples

| February 09, 2018
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If you do a simple search on the topic of relationships and finances, you’ll come across countless sobering statistics. For example, you’ll find that money is the primary reason for arguments between couples, with many couples averaging three fights per month revolving around financial issues. You’ll also learn that 3 in 10 married adults admit to potentially deceitful behavior about money and that disagreements about finances are the most common predictors of a future divorce.

Why is it so difficult for money and love to peacefully coexist? For one, finances tend to be an emotional topic for most people and cause plenty of stress in everyday life, so many couples attempt to avoid these conversations at all costs. In addition, everyone has their own opinion on how to manage money and most of us also have a unique financial personality. Some of us are savers, some are spenders. Some of us may be conservative, while others are free spirits. These differences can cause friction and discord, which then affects all other aspects of the relationship.

But no matter what the statistics tell us, money doesn’t have to be a stress point in a relationship. Here are a few simple strategies that may help couples avoid financial friction.

Be Honest

It’s important for both partners to offer full disclosure of their finances and be open about expenses, regardless of whether you’re married or you live together, have joint accounts or separate bank accounts. You and your spouse should be aware of how you spend your money, especially when it comes to significant expenses, loans, or ongoing fees.Studies show that around 49% of financial arguments are about unexpected expenses. By maintaining an open line of communication regarding spending habits and upcoming bills, you may be able to avoid such confrontations.

Set Healthy Boundaries

Just like other areas of the relationship, It’s essential for couples to be on the same page regarding their finances. Sit down together and discuss how much can be spent per month on non-essentials. Establish and agree upon a few basic guidelines and create a structure for how you will spend and save money. If one of you is more disciplined than the other, you might consider having the disciplined spouse manage the monthly budget and spending.

Work As A Team

Most often, one spouse acts as the Chief Financial Officer of the household, managing all bills, budgets, savings, investments, and insurance policies. However, it can be helpful for both partners to understand their spending versus their saving. If time allows, sit down together once a month to review credit card statements, account transactions, and other bills and check for any possible errors. Ongoing input from both partners will strengthen your relationship and create a true partnership.

Reward Yourself

Set aside a portion of pocket money that you and your spouse can each spend every month on something you love, whether it’s a massage, a round of golf, or a steak dinner. Along with saving for long-term goals, set small objectives you can reasonably accomplish each month and celebrate your success.

Find An Objective Partner

Sometimes the best way to ease money tensions is to work with an objective third-party. A financial professional can come along beside you and your spouse to review your financial landscape, identify any gaps in your insurance coverage, assist you in establishing short and long-term goals, help you stay on track, and provide professional and knowledgeable advice.

Although the topic of finance can occasionally cause tension, money doesn’t have to become a constant source of concern in a relationship. Invest the time to address spending habits and savings goals, uphold transparency regarding purchases, and communicate effectively.

At Delong & Brower, we offer comprehensive financial planning services that are capable of addressing a wide range of financial circumstances and concerns. We partner with you to see your finances from a holistic point of view, create customized strategies, identify long-term goals and the steps needed to pursue them, and track your progress as you move through life. If you have questions about your financial situation, desire advice or education on investing, or have yet to get started strategically planning for your retirement, I’d be happy to help. Call us today at 616-396-0500 or email jjohnson@delongbrower.com to schedule a complimentary consultation.

About Joel

Joel Johnson, AIF® is an Investment Advisor Representative with DeLong & Brower, P. C., a Holland, Michigan accounting, retirement consulting, insurance, and financial services firm. He specializes in providing comprehensive wealth management and retirement plan consulting for individuals, families, retirees, and business owners. Along with more than 15 years of industry experience, Joel is an Accredited Investment Fiduciary®, a Chartered Federal Employee Benefit Consultant, and a Certified Business Adviser/Consultant through Crown Business and Crown Financial Ministry. To learn more, visit www.cpaholland.com.

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