Champaign, IL - Ask any couple how they handle the money talk.. you may get dead silence or a laugh.
Here to help start the conversation with your dime, Daly Andersson, vice president & private wealth advisor for Busey Wealth Management.
If you find it difficult to talk about money, you’re not alone. Many married or committed couples struggle to have the “money talk.” According to a study by Fortune:
- more than 40 percent don’t know how much their partner earns,
- 43 percent incorrectly quote their partner’s income
- and 10 percent missed the mark by $25,000 or more.
Conflict over finances (i.e., spending habits, debt tolerance, money management, etc.) is among the most common reasons for divorce.
- According to the Relationships in America survey (which surveyed 4,000 divorced adults ages 18-60):
- 24% blamed financial priorities/spending patterns as the reason for divorce.
Sooner rather than later. Couples often avoid talking about money to prevent arguments. But scheduling regular money meetings may actually help by:
- getting a better understanding of your finances
- and providing a forum for handling disagreements.
Busey suggests asking the following questions to understand and prepare for your financial future together:
What are your financial habits?
Understand your loved one’s attitude about money or their “financial personality.”
Are they a saver or a spender?
It can be difficult when a saver who is focused on the future marries a spender who lives for today. The key is to find common ground.
How, and how much, do they use their money?
Fully disclose your financial situation (i.e., earnings versus spending and debt).
Never assume your partner knows as much about your finances as you do.
What are your financial goals and priorities?
Discuss short- and long-term financial goals.
First, write them out, prioritize your goals (i.e., saving for your child’s college or saving for a dream vacation) and make a plan.
Work together to achieve your agreed-upon goals.
Create a budget by determining your income, tracking your spending and sticking to it.
FinanceWorks through Busey ebank on busey.com can help.
When you accomplish your financial goals, reward yourself and re-evaluate your priorities.
Communication and compromise are key. Don’t assume you know what your partner is thinking, ask, and be willing to negotiate.
From budgeting as a couple to saving to retirement, college and beyond, Busey is here to help with the resources you need. Visit the Resource Center on busey.com for:
Financial calculators to calculate your goals—from personal financing to investing and more
Financial assessments to help you evaluate your options for retirement, major purchases and education funding
Podcasts from our team of experts
And articles featuring our insight