Finances build the foundation of a “great” marriage
Money matters—it’s one of the biggest triggers for couples, and no wonder. Financial stability is the foundation onto which you will build a lasting partnership. If you each have different ideas about how to develop that foundation, it can undermine the whole structure of your lives together.
Money is the single biggest issue about which couples fight, and one of the prime reasons for divorcing. When to save, how much to save, strategies for investing, what insurance to purchase, and on. From the start of your lives together, on to securing the future of any children you might have, and then though your final years together, financial planning impacts every aspect of your lives.
Learning how to plan your finances together is a key skill for your growth, and your future success, as a couple. It’s also a prime indicator of the health of your partnership.
This was the conclusion of a 2018 study* by Ramsey Solutions, a financial education company. More than 1,000 U.S. adults were asked about attitudes toward personal finance. Questions included descriptions of marital health and the subject of money.
In this study, 87% of the individual respondents who described their marriage as “great” also reported they work with their spouse to set long- term financial goals. Among respondents who described their marriage as just “okay,” or “in crisis,” only 41% reported working with their partner in this way.
Lack of unity about money is a dream-crushing situation. Among respondents who said their marriage was “okay” or “in crisis,” only 45% reported discussing their money dreams together. But 94% of respondents with a “great” marriage also said they discuss their money dreams together.
Do you ‘money dream’ together?
What are your money dreams? Do you and your partner have the same ones, or is your disparate approach to money causing deep rifts in your lives?
The Ramsey study found that couples with a “great” marriage are almost twice as likely to discuss their finances together on daily or weekly basis, compared to those who say their marriage is “okay” or “in crisis.”
If there is a disconnect in the way the two of you approach financial planning, it’s important to get this aired out, together. Who is the spender, and who prefers to save? Who is more risk tolerant when it comes to investment planning? Do you have the same long-term investment goals?
Start the conversation by developing a monthly budget together, then make time to talk about it, and other financial issues, regularly. Alternatively, you can both meet with your Financial advisor and have them start these conversations. These conversations are very personal and it might be helpful to have a 3rd party mediate the conversation between the two of you and be able to provide constructive solutions that meet both of your objectives. If you don’t have a Financial Advisor that can do this, give us a call.