Did you know that November is Financial Literacy Month? We sure did and we think it is the perfect time to take a closer look at your finances.
This week we wanted to focus on money and relationships. Two things that sometimes react like oil and water. It can be hard to have the tough conversations, whether it be about spending or your big dreams, but we hope this inspires you to start talking.
Money is emotional topic between partners mainly because it is so closely tied to your dreams. Everyone has different reasons for saving. Yours could be saving for your child’s future education or a vacation home, while your partner might be hoping to buy a new truck or an RV. This is typically where the fights start. Any criticism here, constructive or otherwise, can feel like your partner is attacking your life’s goals.
Use this conversation (or argument, maybe?) to start another open-minded conversation about your goals. Leave money out of it for a second and just share your biggest goals and dreams with your partner. Talk about where you see yourselves in 10, 20 and 30 years. It’s okay if you have slightly different ideas, that’s where (shocker) compromise comes into play.
Other questions to ask at this point are:
- How do you want to retire?
- How will we pay for our child(s) education?
- How much are you willing to save for retirement right now?
- Are you comfortable with our level of debt?
- Are you satisfied with our investments (more or less)?
- Do you think a financial planner or advisor would be helpful to us?
Don’t freak out if you aren’t automatically on the same page. Having an honest conversation is the first step. If both of you are willing to compromise, but are having trouble working it out, a financial advisor or planner can help you determine what your priorities should be.
Remember, have fun! Part of compromise is allowing yourself to keep some fun money. Independence is important, so if you want to buy a latte in the morning you don’t have to check in with your partner, but any hiding of bigger purchases could be a red flag for underlying issues.
Want to know how you stack up to other Canadian couples? Here are some statistics from a Credit Canada Debt Solutions ans Capital One survey:
- 82 percent of Canadians in relationships say they speak openly and honestly with their partners about finances.
- One third say their partner’s spending habits have hurt them when it comes to achieving financial goals.
- One in four Canadians believe their significant other hides expenses.
- Nearly half feel they are more in control of their finances than their partner.
- A third have argued with their significant other over their spending habits in the past year.
If you want to know more about Financial Literacy Month, please visit: http://www.financialliteracymonth.ca/
We want to know how you make financial decisions with your partner. Share you stories or questions down below!