When it comes to handling finances, we all make mistakes. However, the consequences of bad money management are a lot worse for couples. According to the stats, money problems are one the most frequently cited causes of divorce.
Personal finance is already challenging as it is. What more for couples?
If you are a couple who is struggling with your finances, you are probably making at least one of these money mistakes that can potentially create a toll in your relationship. Read and learn how to steer clear or fix them.
You never talk about money.
Communication is the key to a long-lasting relationship, and that doesn’t exclude the “money-talk.” Discussing your finances before and during marriage (regularly) is critical in every relationship. Opening up about each others’ money histories is also part of the process. This way, you will learn about each others’ spending habits and how finances were like growing up – because how money was handled in the past is a big influence to how he/she manages money now. It will help you understand each others’ personalities towards money and prevent future fights about budgeting, savings and spending habits.
Only one of you is responsible for household finances.
One may be better with money than the other but it’s a mistake making one person feel all the burden or let the other one feel out of the loop. Both of you should be actively participating in managing your finances in order to be aware of your current financial situation and from that, you get to spend & save accordingly.
Not having a personal budget or bank account.
Fights usually occur when there are disagreements between how the other person spends money from the mutual fund or how the husband or wife stops the other partner from spending. This usually happens when there’s only one of you who makes money. But that’s unfair. Couples should provide each other a certain amount of “personal money” while maintaining an open and honest communication. Financial secrets are a big no-no!
You don’t have a common financial goal and a budgeting style that suits both partners.
As two people in love and building a life together, it’s a must for you two to be on the same page in everything, including finances – goals and budgeting style. Both of you should work together to achieve each others’ goals – your goal is your partner’s goal, your partner’s goal is yours as well. When setting up a budget, you need to decide together and consider each others’ opinions and concerns.
True, both of you came from different places and it’s impossible to agree on everything but you need to meet halfway for everything to work out for the best.