??Finance Friday: Combining Finances in The Game of LIFE??

??Finance Friday: Combining Finances in The Game of LIFE??

??Love and Marriage, Love and Marriage, Go together…??

But, what about bringing together your financial accounts?

I know this is a loaded topic, but hey…

It is ??Valentine’s Week?? and I thought this was a good time to bring up the topic of how to manage finances as it pertains to marriage inside of your personal finance journey.

This is one of those topics that is not exactly on the top of everyone’s mind, but I believe is so crucial to winning with money, and, if you trust statistics, also crucial to winning in marriage/relationships as well.?

Reading up on this topic, here are a few things I have found:

• Bankrate reported that about 43% of married couples have combined their money accounts.
• Married couples hold four times as much wealth as unmarried couples who live together, and researchers point to combining finances as one reason why (WSJ)
• Research from Cornell University found that combining finances creates higher satisfaction in relationships and the happiest couples. (Deseret News)

Why do we think that with the research out there that says combining finances creates a happier, more satisfying relationship, and more wealth building power, that over 57% of couples keep their finances separate???

Maybe they don’t know the research.??

Or maybe, this is a topic that needs to be discussed amongst couples more often.?

It is easy to come into a relationship, especially with two working individuals, and think of money in terms of “mine” and “yours”.?

But research shows that this is dangerous.

We need to be thinking in terms of “ours”.?

Our money, our accounts, our future…

One of the reasons this kind of thinking may lead to lower satisfaction in relationships is that one partner doesn’t know what the other partner is spending their money on.

There is a lack of transparency…which leads to less trust.??

Or at least a suspicious thought possibly.

According to research from Emily Garbinsky, associate professor of marketing and behavioral scientist at Cornell University, and Joe Gladstone, an assistant professor of marketing who studies consumer decisions at the University of Colorado at Boulder, in addition to the benefits of having access to a larger pool of assets, combining finances leads to a greater feeling of accountability, since each half of the couple can observe the other's spending and saving habits more closely.

Think about it.? If one person in the relationship has “their” cards from stores A, B & C, and the other person has "their" cards from other retailers, and each pays for those cards out of separate private accounts, there is no transparency or accountability to one another.

This can lead to Resentment. Frustration.? And also Financial Infidelity.

Say what? What is Financial Infidelity?

Financial Infidelity is when a partner deliberately chooses not to tell the truth regarding money.?

A survey from U.S. News & World Report reveals that the biggest money-related lies that pop up in relationships are secretive purchases (31.4%), hiding debts (28.7%) and dishonesty about income (22.6%).

Oh boy!

I have heard countless councilors who do premarital counseling state that one of the best things you can do for your marriage is to combine your finances once you get married.??

I see what you are spending, you see what I am spending.

Better yet, sitting down each month and agreeing on a monthly budget is even better.

We have a goal. We have a plan. This is where "our" money is going. On paper, on purpose. (Or on spreadsheet/app or whatever budgeting method you choose)

Being on the same page when it comes to finances is so crucial to winning long term.

One of the biggest reasons for divorce in the US are money fights and money problems.??

Combining your finances is a great first step to avoid these types of issues early in marriage.

So, I’m not telling you what to do (although the statistics and research is pretty extensive), but this might be a great time to have this conversation with your spouse.??

And if you are engaged, great! ?? This is definitely a topic you should approach before tying the knot!

The research is there. Go search for it yourself. But you at least owe it to yourself and your relationship to discuss it.