Money problems are one of the biggest relationship killers, and the leading cause of divorce in modern times when both partners are earning. There are many mistakes that couples make, these mistakes can be avoided which will create healthier relationships and improve the financial situation.
Listed below are a few of the money mistakes couples make:
1 Only One Of The Spouse Does The Finances
This is one of the most common money mistakes. Here one partner is taking care of all the finances, bills, and anything related to money, while the other takes a backseat. This strategy may seem to work for some, but it does more harm in the long run. Here is why-
- It creates a big financial knowledge gap between the couple.
- If one in charge of the finances falls ill or passes away, then the other partner will have a very hard time.
- It discourages joint financial decisions and money conversations.
- It can lead to financial abuse.
It is almost impossible to maintain a sense of equality in a relationship if only one person is involved in financial management.
This can be avoided if both partners get involved in handling finances openly. Get together and work as a team, and both your finances and your relationship will be stronger.
2 There Is No Budget
Budgeting as a couple and working towards common goals can make your relationship stronger. Not having a common plan for the finances can lead to disagreement and petty arguments about how you spend your money, and financial hardships, and leave one unprepared in case of an unexpected life event.
To avoid this, the couple should sit down and discuss goals and priorities. Then calculate your joint income, and expenses, and find ways to save for your goals.
3 Couple’s All Accounts Are Joint
While having joint accounts is important in marriage, one must still have one or two separate accounts. This will also give freedom to each other when you need it. Having a separate account is beneficial for three main reasons
- Having all your accounts joint gets messy in case the marriage fails and ends in divorce. It becomes difficult to separate the funds, as both have equal access to the account.
- It eliminates small arguments when someone spends in a way not aligned with your common values or agreed priorities.
- It can allow one to surprise other spouse with surprise gifts.
Being open about this from the start show partners trust each other, and have nothing to hide from each other.
4 Not Having Financial Plan
Couples that have a long-term financial plan in place have a more stable, harmonious relationship. When one does not have a solid financial plan, it becomes hard to see the big picture and anticipate how lifestyle changes can affect financial decisions and life together.
To avoid this, the couple must consult, if necessary, a financial consultant. With his advice, the couple must create long-term goals like a retirement plan; a child’s education; tracking the same, and looking at the big picture together.
5 Not Having Will
If in marriage one or both partners pass away unexpectedly, not having the will in place can make life very difficult for the family members left behind. Dying without a will means the law decides what happens to assets and money left behind.
So one must have his/her will made because it will make life easier for your family members.
6 Couple- Do Not Talk About Money
Communication is the key to strengthening all aspects of relationships, and finance is no exception. In reality, one must have an honest conversation about money matters even before tying the knot. Have open and constructive conversations around money, financial goals, and any concerns one has.
7 Hiding Bad Money Habits
This often happens because partners are ashamed of their toxic habits or because of a lack of trust. Bad money habits can include secret debt, an addiction like gambling/consumption of drugs, or even taking money out of investments or retirement plans without consulting the partner.
Instead of keeping the bad habits or money problems a secret, one should openly discuss them with the partner so one can find a solution. Even if taking this step is hard, it will ultimately strengthen your trust and relationship.
There may be many other mistakes that couples make, but above mentioned are some of the biggest. Learning to spot and avoid them will strengthen the relationship, and it will also improve your finances.
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Anil Malik
Mumbai, India
8th August 2022s