Finance & Romance: The importance of financial compatibility
It’s Valentine’s Day and love is in the air! Today, we’re taking the time to discuss the importance of financial compatibility in relationships. With money often being a common stressor for couples, it’s integral for both individuals to be on the same page when it comes to their financial health. Below, we’ve outlined top points of discussion that couples should consider:
1. Outlook on money. Some individuals may have a more positive outlook on money while their significant other may have a more negative one, which could be due to their upbringing or past experiences. In addition, there is often one individual who is more of a risk-taker while the other is a more conservative investor. Now that you’re a team, it can be helpful to sync up and share your general thoughts on money and how to invest in the future as a couple to ensure that both parties are comfortable with the decision.
2. Debt. While it’s a sensitive topic, couples should discuss the debt that they’re bringing into a marriage. Student loan and credit card debt are factors that can impede savings and financial growth. Discuss the amount of debt that both parties are bringing into the relationship and create a plan to pay it off.
3. Money history and future expectations. Did you have a parent who wouldn’t spend a dime? Or parents who were quick to spend cash? The way that your parents spent and handled money often impacts your relationship with money. Share your parents’ money habits and discuss how they may reflect your own. In addition, discuss how you would like to talk about money with your kids, and the different money lessons that you’d want them to obtain in order to become financially responsible adults.
Financial compatibility is a crucial ingredient to a happy and harmonious relationship. Discussing finances at the forefront can help prevent any miscommunication or money troubles down the road. Reach out to your financial advisor so that he/she can help provide the right financial advice for your unique situation.