Step 4 To Financial Wellness – Money talk with your partner
You’ve tracked your spending, created a budget, worked on ridding yourself of debt, and are well on your way to a financially secure life. Now you’re ready for step four, in which you’ll have the money talk with your partner. Communicating openly about managing your money is a big part of having an honest and trusting relationship. We’ve compiled six tips to help guide you in this super-important conversation.
1. Plan in advance
Raise the topic with your partner a few days before you want to have the “Big Money Talk” and ask if you can have an open discussion about money sometime soon. This way, you’ll be ready to focus on the conversation and won’t be caught off-guard.
2. Start with a vision
Instead of starting the conversation by bringing up a time your partner overspent, talk about a vision you can both share. For example, you can talk about how wonderful it would be to take a luxury vacation to the Cayman Islands or how you’d love to start saving for a home. This way, you’re putting a positive spin on your money talk, setting the tone for the rest of the conversation.
3. Listen carefully
Your partner will have their ideas about money management, and you may be surprised at the insights they have to share into your spending habits or expensive vices.
4. Talk openly about sharing expenses and savings
You may decide to share expenses and pool your savings at a certain point in your relationship. If you plan to discuss the topic now, talk openly about how you feel to avoid future resentment. For example, if you earn more than your partner, should you split expenses evenly? Can one partner take additional financial responsibilities instead of contributing an equal amount of income to the pot? All of these questions, and more, are important to discuss upfront.
Consider linking one of your accounts or opening a shared account at Elevate Credit Union.
5. Consider having a slush fund
Sometimes, you just want to splurge without having to explain the purchase. You may also want to spend money on a surprise gift for your partner without them knowing you’ve just dropped a large sum of money on something. Having a slush fund, or money set aside for your “just for fun” spending, can help you maintain a sense of independence and keep some of your purchases private. You can keep this fund in a separate checking account under your name at Elevate Credit Union.
6. Set up a weekly or bi-weekly time to talk money
No, you don’t need to have the Big Money Talk every week, but it is a good idea to touch base about finances once a week, or once every two weeks. You can talk about recent purchases, big expenses that are coming up soon, surprise bills, and more. Setting aside time to talk about money will keep the stressful money arguments out of your everyday conversations.
You did it! You had the money talk with your partner, and you are closer than ever. Be sure to stick to your commitments and to bring up any money issues that may arise during your regular money talks for continued harmonious collaboration about all financial matters. And, if you like this post, make sure to check out our other MoneySmart Tips.
