Talk to your partner about the personal finances, financial goals even before getting married
By Guy Avtalyon
Financial matters before getting married are always a risky topic. Getting married isn’t as simple as it seems. Yes, you love each other, but some financial issues must come to the table before you put rings on the fingers. Talking about future finances can lead to the break of your relationship but you have to have one thing in your mind: When poverty comes to the door, love might fly out the window. That’s why you must have a clear situation before getting married. You must consider some questions with your partner.
Financial matters very often can give you the right picture of future life. What if you are not compatible with that field?
First of all, you must have at least a basic idea about your partner’s financial goals for the future. Has your partner any idea to change the job? Does your partner plan savings and how? Where you will be after 20 years? Compare the answers with your personal financial goals.
What is your most important financial intention?
The financial intentions can run the range from paying off all debts to buying a house. Maybe your partner is planning some several-months traveling to the far East to find itself or to purchase the car. What is about you? Can you place yourself in that image? So, you have to discuss some financial matters before getting married.
Financial matters before getting married: Is your partner a saver like you are?
It’s necessary to have a sense of how your partner manages money. Are you similar or two different worlds? Don’t avoid talking about this. What if you are raised from your childhood to put aside for example 10% of your earnings as savings and your partner is more willing to live largely, spending today no matter what will come tomorrow? If you don’t open this question you may find yourself disappointed and frustrated later in your life.
What are your priorities for spending money on?
You must discuss this before getting married. Your priority may be buying home and save for that, but your partner’s priority could be traveling every year to some exotic place. Nothing is wrong with that. The main point is to understand each other and find where you can or cannot support your partner’s financial goals and respect that. Understanding a partner’s financial goals is a good base for the future.
Is it crucial for you to have what your friends have?
Financial issues before getting married can be inspired by other people’s habits. Maybe you want something that others already do or have. So, take care. You must set your own financial goals, not copy others. Do you really need those high-tech gadgets your friend already has? Does your partner plan to travel with its friends or with you or both? How will you share the costs?
How much your partner earns?
Some surveys showed that 4 in 10 couples don’t know how big their partner’s income is. Why is important to know about your partner’s salary? Because of future financial plans. For example, your partner’s salary is $2.000 per month but plans to purchase a house worth $300,000 in the next several months. Is he/she serious? To be sure your partner has realistic expectations about finances, you have to discuss financial matters before getting married.
How stable are you in your profession?
Any conversation about the future should involve some issues about job security. Maybe your partner is considering changing the profession. maybe wants to continue the education. You have to be prepared for similar occasions. Some survey showed that 42% of millennials want to leave their jobs in the next two years. If your partner is one of them that will influence your finances.
Do you or your partner favor financially independent?
If you want to move in together money is a big issue. Will you share your funds? Maybe you want to share a part of it? Will you open a joint account? The other study revealed that almost 1/3 millennials prefer to keep their money separated from the partner’s account. Among Gen X-ers it is the case with 11% and among Baby Boomers 13%. You have to talk about this.
A healthy relationship is based, besides love, honesty, respect to each other’s desires, understanding the differences. When it comes to money, spending habits can be crucial for the quality of together life.
As we said at the beginning of this article: When poverty comes to the door, love might fly out the window. So, discuss financial matters before getting married.