It can be tricky to instigate money talk with your significant other. However, with over a third of divorcees citing money issues as the reason for the end of their relationship, sorting out finances with your fiancé may just save your relationship in the long term! Here are some tips to help brace you and your partner for banking talk.
Agree on mutual money goals
Once you know a relationship is heading in a serious direction, you need to check-in with each other on your priorities and goals for the future – money matters being an important one. If your partner only wants to spend on fancy dinners and exotic holidays, whilst you prefer to invest in home improvements, some negotiation might be needed to find common ground and goals you can both aspire to and derive satisfaction from once targets are met. A joint account dedicated for saving is a great idea and agree to set a monthly payment between you.
Have a monthly money meeting
Whilst it’s much less romantic, just like you would prioritise a regular date night, set time aside each month to check in financially. This will help you see if you are meeting shared savings goals and help stop either of you from overspending or spiralling into debt. Take time to chat bills, credit cards and check whether there are any big unexpected or looming purchases you aren’t prepared for. This should act to take the stress out of your financial life and stop this worry potentially seeping into your relationship. More than a quarter of partners say that their partner’s overspending effects their ability as a couple to save and become financially secure. A regular check-in can help stop any issues before they become a much bigger problem.
Free up cash for personal spending
It’s a common dynamic in a relationship to hide individual spending from their partners, particularly when it comes to non-essentials. Feelings of guilt and arguments once you have been caught out can be a real relationship killer. A way to avoid this is to allocate a personal spending fund, once you have all your bills, savings and necessities covered. That way you can spend guilt free and on what you like and without judgement from your partner.
Think about the future
It’s easy to put this off, but it’s a sensible idea to have a financial plan in place for when you are no longer here to help protect your partner from incurring debt due to things like funeral costs and loss of earnings. Organising a will together as well thinking about taking out life insurance and income protection can all make things go much more smoothly at a particularly difficult time for your partner.
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