Financial issues are the second leading cause of divorce, according to a survey conducted by Ramsey Solutions in 2018. It’s not surprising that financial issues related to debt and lack of communication about finances will cause tension in a relationship. Fortunately, though, having a plan to discuss finances with your spouse can clear the air to avoid conflict.
Let’s go over a checklist of topics to discuss with your partner and why it’s so important to have a solid plan and understanding of each other’s finances.
Benefits Of Financial Discussions
Aside from the obvious of avoiding many arguments, discussing your finances with your spouse is crucial in case of emergencies, as well as for any future planning. It will be incredibly overwhelming to think so far ahead; considering college funds for your children, setting up an estate, potential investing in the future, and so much more will need to be considered.
Ideally, you’d want to discuss these topics with your partner before your marriage, but it is totally possible to pick up a long financial talk at any point in a marriage.
Financial Discussion Checklist
Understandably, it can be overwhelming to approach these topics. No one likes conflict with your spouse, and it is very easy to get wrapped up in the stress of communicating. An overview of what you should bring up to your partner may be helpful. Here’s what we recommend:
- Set an evening aside to discuss everything on your mind, including your financial history, goals, and everything in between.
- Be as open-minded as possible. Everyone has different experiences and thoughts about money, so try to come together on shared values and plans.
- Prepare yourself for difficulty. It may seem obvious, but you may struggle to share some topics with your partner. Sharing issues with your past, history of debt, and setting boundaries will be difficult.
- Pace yourself to avoid tension. Taking every goal one step at a time is crucial, as trying to tackle everything in one day will likely cause problems. We recommend focusing on daily/monthly finances and building your way up to future financial goals.
- Use resources together. Financial terminology can be quite confusing to those who aren’t familiar with it. Luckily, in today’s modern age there are plenty of resources to learn together. There are books, podcasts, and of course, information found at your financial institutions.
Other Pieces of Advice
There are so many topics involving money that should be discussed with your partner, but as we’ve stated, it is most recommended to take baby steps. Start off with understanding each other’s financial situation, then take a look at budgeting for regular expenses. Once you’ve determined how to cover all your normal costs, then you can begin to explore the future.
Although it’s very common for couples to merge their finances, you will have to take a look at your incomes and debts to determine if that is the right choice for you. Since millennials are more likely to have high amounts of debt, they are a prime example of deciding to keep finances separate for their own reasons.
Keep in mind there is no right or wrong way to approach your financial situation as long as you are looking at every aspect of your financial situation.
Lastly, we recommend making financial discussions a regular part of your lives. It allows you to check in on how everything is going, especially if you have long-term goals that you are managing. This also ensures that both you and your spouse have the comfort of knowing your communication lines are open.
Final Thoughts
Involving a financial advisor is a great way to resolve every issue and know that you are making the right choice for your future. Financial advisors are unbiased towards both of your personal lives, allowing an impartial form of communication to avoid confusion and conflict. Plus, they are willing to educate you on anything you’re unsure of.
If you know that you and your partner are in desperate need of a financial talk, we’d love to be involved and help the process go as smoothly as possible. Contact us today!
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