Couples and Money

by World of Finance on March 6, 2012

Finances are among the top reasons couples end in divorce.  To avoid this, it is recommended to create a budget that works for both parties.  This way both people can be held responsible and hopefully create a joint effort to work toward a common goal.  Even movies display examples of finances creating stress in relationships.

EXAMPLE FROM MOVIE

I remember watching In the Pursuit of Happiness starring Will Smith.  Even though I watched this movie years ago, I still remember a particular scene in the movie when Will Smith’s character and his wife in the movie couldn’t make rent for that month and how it put a strain on the relationship.  It appeared as though the financial stress made the romance disappear.  In order to proactively prevent this, couples should create a budget that works for them.

BUILD A BUDGET THAT WORKS

A budget that works can’t be one-sided.  In fact, the budget should be created by both parties and not only one.  This way, they can discuss the various expense categories and come up with a realistic budget that is not doomed to fail.  This process will take compromise from both sides, but this way both parties can be held responsible.  Make sure to even include a fun-money category in the budget as this will help increase the odds of staying on budget.  There is a saying, “All work and no play makes Jack a dull boy.”  Basically, if all the money goes to pay bills, it’s easy to get off track as you are working hard and not having any fun along the way.  Some couples have even admitted to having a budget and common short-term and long-term goals has actually brought them closer together as they are now working as a team.  If the two parties do however decide to let one person manage the finances, make sure that at least both parties are aware.

BOTH PARTIES NEED TO BE AWARE

Who handles the finances in your relationship?  If you would ask this same question a few generations back, the typical answer would be the man.  Since women typically live longer than men do, what happens after the husband passes away?  You guessed it – the woman is left helpless and unaware how to financially manage her life.  Don’t let this happen to you! This among other reasons is why it’s important for both parties to be aware of their personal finances.

TAKEAWAY

It’s important for couples to be on the same page with their finances.  It can be a great experience to achieve short-term and long-term goals with your partner, this can even make the relationship stronger.

This post is part of Women’s Money Week 2012.  For more posts about Couples & Money see Relationships and Money Roundup.

Image: Ambro / FreeDigitalPhotos.net

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12 Responses to “Couples and Money”

  • Michelle says:

    I definitely agree. I handle all the finances, but I make sure that he is aware of everything.

  • Daisy says:

    I know my boyfriend is aware of what my finances are like, and I know what he’s doing too. I think at first, its a struggle, but now it’s more of a natural thing. We’ve grown into our financial relationship.

  • Dollar D says:

    The biggest source of stress in most relationships is definitely money so it’s important to talk about it, and often.

    Having both people on board, with common goals and vision, can make a huge difference in your financial success

  • MoneyCone says:

    Money is the number one cause for divorces. If both aren’t on the same page, trouble will start brewing sooner or later.

  • Shondellc says:

    I love budgeting, so I’ll definitely handle the finances when I get married, but will make sure hubby is present every time I do the budget, so we’re both in agreement.

  • Derek says:

    The biggest thing is to be on the same page. One spouse could have a goal to be completely debt free, while the other one just wants to have a shopping weekend once in a while! There needs to be compromise, and there absolutely has to be a common goal, otherwise neither of you will be happy in the relationship.

  • My wife and I have a running joke where I’m the finance department and she’s the purchasing department. :) In reality, I handle all the money issues and investments. But I never make it as if she has no say. We talk about all our major expenses and the big-ticket items we wish to buy throughout the year. Below that, we’re both free to buy whatever we want at our discretion, which gives both of us the feeling of independence. My belief is that it helps to make sure neither person feels “choked” by the budget or at a loss of control within the relationship.

  • Hilda says:

    My husband is clueless when it comes to money. If it’s up to him, he’ll spend it as fast as he can make them. Fortunately, he’s aware of his bad habits and let me take care of the finances. From time to time, I will sit him down and show him where we’re at moneywise. That’s what works for us.

  • Bonnie says:

    People have different ways of managing and dealing with money so the advice of working out a budget together is great.

    I think the idea of it bringing couples closer together is probably right a lot of the time. If you’ve both got it clear in your minds and know what you’re working towards in the long term and short term it can prevent a lot of disagreements!

  • Agreed. Each couple needs to find out what works out best for them. Financial trouble is a key cause of matrimonial troubles. Money does not buy love, but the lack of money can make love go out the window

  • Kylie Ofiu says:

    I know so many couples where money has been a stressor. Thankfully we are usually on the same page having both been brought up in frugal homes. There have been times where we have had money issues, but if you have done a budget together, agree on finances and are honest with each other then things should be ok.

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