3 Financial Conversations You Should Have With Your Spouse

One of the most pivotal aspects of a romantic relationship may also be the least romantic in nature – money. However, having a clear understanding of your and your spouse’s financial situation is core to building a strong and trustworthy relationship. Maybe you’re contemplating a special anniversary gift for your spouse but its steep price tag will put you in a financial bind. Maybe you want to use income from your side business to pay down debt but your spouse wants to save it toward other goals. All of us, if we’re honest, know there should be some balance in the way we approach these and the many other decisions we make every single day with another person in the picture, but how do we work together with a spouse who may see things differently than we do? Here are three financial conversations you should have to ensure honesty and openness around the subject of money in your relationship.

Explaining Your Current Financial Situation

When two people enter into a serious relationship, the topic of money will eventually come up. While it may not mean combining bank accounts just yet, it’s important for the other person to know where you stand concerning your debt and goals.

If you bring $50,000 of student debt to the table, your spouse needs to know that some of the money coming in will need to go toward making your monthly payment. If you plan to keep putting $200 into savings each month, your spouse should know so both of you can figure this into the budget.

Determining Your Future Goals

As you consider integrating your finances, you’ll need to identify certain goals to maintain right now as well as aspirational ones for the future. Whether it’s buying a home, having children, going back to school, or saving for retirement, these are all things you should discuss early on to ensure the two of you are on the same page.

There’s likely to be some compromise along the way, but if you can establish which goals you want to meet, you can better work together to make them a reality.

Identifying How to Combine Finances

Ultimately, the choice is yours, but many couples opt to combine resources into one jointly-owned bank account. There’s no right or wrong answer, but you should consider combining budgeting expectations. Even if you don’t plan to put your money into the same account, having a document that both of you can use to monitor your budget is invaluable.

This will allow both you and your spouse to get a clear picture of what has been spent, what is left, and how best to cut back, pay down, or save. Remember, you’re in this together, so you’ll need to agree on how much money is devoted to certain areas (i.e., groceries, paying down debt, housing, vacations, etc.).

You may feel as if these conversations are just too difficult to have, even if you and your spouse have been together for a while. Fortunately, the wealth advisors at Cadent Capital can help you navigate these questions, and help you and your financial spouse build a stronger relationship in the process.

About the Author
Emma Cramm, CFP® is a wealth planner at Cadent Capital. Earning her Certified Financial Planner™ (CFP) certification and credentials in March 2018, she is currently a Chartered Financial Analyst (CFA) Level II candidate. Committed to helping individuals better plan for their future, she is responsible for onboarding new client relationships and helping others build financial freedom. If you are interested in allowing our team to help you establish a better foundation for your financial success, call us at (972) 777-4991 or visit our website.