Money is one of the major causes of arguments and stress among couples. If you have not tied the knot yet, make some time to have the money talk. You and your significant other should be upfront about all your financial goals as well as all of your individual debts. You will also want to know in advance if you are a big spender, but your other half is a penny pincher. If you discover you are financial opposites, now is the time to try to find common ground.
If you are already married, an interesting idea is to keep a joint account for basics like rent, utilities and groceries; but for everything else, keep your money separate.
For the joint account, fund it with an even fifty-fifty split. Or, if one of you makes significantly more money than the other, you may decide to fund the joint account using a percentage of income instead – for example, you and your significant other may choose to each contribute 30% of your income towards joint expenses.
For personal purchases, you may each want to keep separate accounts. This way there is no finger pointing and no judgements. For major expenses, discuss and if you agree, that expense could be split. If you disagree, but one of you really wants to make the large purchase, they can still do so, but they would have to pay for it in full on their own.
The key is to communicate and map out your game plan in advance. It is well worth the effort if it means keeping peace and harmony in your relationship.
This information in the Financial Tips section is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.