Falling in love with your finances, as a couple

Talking about finances is probably not the most romantic thing, let’s be honest, most people hate talking about financial issues, but just like it is important to build a strong emotional foundation for a long-term relationship, having open and honest conversations about your finances and setting financial goals together, as a couple, is extremely important for a healthy relationship.

Remember different people have different views on money, likely depending on their respective childhoods, financial education, or possibly any financial trauma that they may have experienced. When you are both working towards common financial goals and practice transparency in each other’s finances it is easier to identify and understand financial biases and to manage your finances together.

Start by getting the basics in place.?Goals may include having to set a budget, making a determined effort to pay off debt, saving for a property, your children’s education, or a vacation.

It is common that one partner will be more financially savvy and take the lead in controlling the finances. However,?it is very important for both partners to participate in setting financial goals to always stay informed of exactly what is going on in your finances and be on the same page.

In behavioural finance, The Ostrich Effect is the attempt made by investors to avoid negative financial information. It is sometimes very easy to disregard a financial issue, but we all know that the problem will only get worse in time if not addressed honestly and properly from the start.

There are many aspects that couples need to consider and action, some examples are:

• Couples that start living together should discuss how they will split expenses and draw up a well-thought-out cohabitation agreement
• If you are planning on getting married it is just as important to start having the conversation before the wedding and your adviser can even give you valuable tips on matrimonial property and estate planning. Did you know that you can make provision for certain policies, payable to your spouse and/or children, in your antenuptial contract which will be excluded from your deemed assets in your estate for estate duty purposes?
• When doing family planning, ideally, partners should also discuss their thoughts on how they will raise the child(ren), pay for all their needs, and start investing for their future well in advance.
• Another scenario where proper financial planning is important is where only one partner is employed, or earns considerably more than the other. If the partner who is unemployed or earning less is spending a lot of their resources on managing the children and/ or home, they could possibly not be saving enough towards their own retirement. If this applies to you, have you ever thought about what would happen in an unforeseen event such as divorce, an accident, and a resultant disability, severe illness, or even death?

When partners aren’t on the same page or in the know it can cause friction. Financial struggles can be the catalyst for miscommunication, distrust, conflict, and often divorce, which can in turn potentially result in even greater long-term financial difficulty.

Instead, make an effort to fall in love with your finances together. Work together to achieve exciting goals and treat your finances with the same love and respect that you do each other. In the long run, it will certainly be rewarding to take proactive steps to significantly reduce financial stress and enjoy greater harmony in your relationship.

Schedule a meeting with a trusted financial adviser who can give unbiased advice and assist you, as a couple, with a holistic plan.