By Money is one of the leading causes of stress in relationships — and being on the same page financially will not only give your relationship a better chance of success, but also improve your ability to reach your financial goals.
To do this, it’s vital that you start by understanding each other’s financial habits and attitudes to money, says Stian De Witt, CFP, executive head of Financial Planning at NMG Benefits. If one partner is a saver and the other a spender, there may be conflict when it comes to financial decisions. Understanding each other’s financial habits and values can help you both work towards common financial goals.
“Money affects many of the major choices you and your partner decide to make. Are you going to buy a house, and where? Where do you want to send your kids to school? What cars do you want to buy? When do you want to retire? By setting aligned and common financial goals, defining individual responsibilities, and establishing a budget, couples can build a foundation for relationship and financial success,” says De Witt.
Laying the foundation for financial stability
Planning is essential to any relationship. This includes determining how income is managed, how expenses are shared, and who is responsible for which financial tasks. When both partners feel that their interests are considered, there’s less chance of resentment and feelings of inequality.
Shared goals and aspirations
A critical aspect of financial planning within a relationship is to identify and prioritise a set of mutual goals. Whether it’s saving for a dream holiday, buying a house, retirement planning or planning for the growth of your family, having a plan helps channel resources toward these goals. This encourages open communication around your needs and expectations, which is essential for a healthy relationship.
Transparency and trust are key
Being open and honest about your financial situation helps build trust between partners. ‘Financial infidelity’, where one partner hides financial decisions or activities from the other, can severely damage trust in a relationship. By planning together, you are more likely to be aware of each other’s financial actions.
Support during life transitions
Financial planning takes constant communication. You must regularly review your goals, track your progress, and discuss new priorities, depending on where you are in your lives. This shared responsibility brings partners closer as they work as a team to achieve their aspirations.
“The bottom line is that understanding your partner’s financial habits is essential for the success of a relationship. Money impacts so many aspects of our daily lives, and by discussing and understanding each other’s financial habits and values, you can work together towards common financial goals and ensure the success of your relationship at the same time,” says De Witt.