Money Talks: Open Communication and Financial Harmony in Relationships | Danielle's Desk | by Danielle Michel, CPA

Let's be honest, talking about money can be more awkward than running into your opp at the gym. Nobody wants to be?that?person who brings up finances, right? It can feel like navigating a minefield, especially when it comes to our closest relationships. But guess what? Avoiding the "money talk" can actually cause way more drama than facing it head-on.

Think about it.

Whether it's with your partner, family, or even business associates, money plays a HUGE role in how we interact and make decisions. From splitting the rent to planning a family vacation or launching a business venture, finances are intertwined with just about everything. So why do we shy away from discussing it openly?

Well, often it boils down to fear.

Fear of judgment, fear of conflict, fear of appearing greedy… the list goes on.

But here's the thing: open and honest communication about money is the secret sauce to building stronger, healthier relationships.

Why is Talking About Money So Important?

First things first, clear communication about finances helps build trust. When you and your partner, family member, or business associate are on the same page about money, it creates a foundation of transparency and understanding. No more hidden credit card debt or secret spending sprees!

Secondly, talking about money helps you achieve shared goals. Want to buy a house? Start a family? Launch that dream business? You're way more likely to succeed if you're both clear about your financial situation and work together towards those goals.

Finally, and perhaps most importantly, open conversations about money can actually?reduce?stress and conflict. Think about how many arguments stem from misunderstandings about finances. By addressing potential issues head-on, you can nip those arguments in the bud and create a more harmonious relationship.

Okay, I'm Convinced. But How Do I Actually?Talk?About Money?

Alright, now for the practical stuff. Here are a few tips to get those money conversations flowing:

• Find the Right Time and Place:?Don't ambush your partner with a budget breakdown right before bed or spring a financial discussion on your family during a holiday gathering. Choose a neutral time and place where everyone feels comfortable and relaxed.
• Start with "I" Statements:?Instead of blaming or accusing ("You always spend too much!"), focus on your own feelings and perspectives. For example, "I feel a little anxious when we don't have a clear budget."
• Be a Good Listener:?Communication is a two-way street. Make sure you're truly listening to the other person's perspective and trying to understand their point of view.
• Set Clear Goals:?What do you want to achieve with this conversation? Is it to create a budget, plan for a specific expense, or simply gain a better understanding of each other's financial habits?
• Don't Be Afraid to Seek Help:?If you're struggling to have productive money conversations, consider seeking help from a financial therapist or counselor. They can provide tools and strategies to navigate these tricky discussions.

Talking Money with Your Partner

When it comes to romantic relationships, money matters can get especially complicated. Here are a few specific tips for couples:

• Schedule Regular Money Dates:?Just like you schedule date nights, make time for regular "money dates" to discuss finances, review your budget, and plan for the future.
• Be Honest About Your Financial History:?This includes everything from your credit score to any debt you might have. Transparency is key to building trust.
• Decide How to Manage Finances Together:?Will you have joint accounts or keep your finances separate? Will one person be in charge of bill paying, or will you share the responsibilities? There's no right or wrong answer, but it's important to find a system that works for both of you.
• Don't Forget About Your Financial Values:?How important is saving for the future versus enjoying experiences in the present? Understanding each other's values can help you make financial decisions that align with your shared goals.

Talking Money with Family

Whether it's navigating inheritance, lending money to a sibling, or supporting aging parents, family and finances can be a tricky mix. Here are a few things to keep in mind:

• Be Clear About Expectations:?If you're lending money to a family member, make sure you have a clear agreement about repayment terms.
• Set Boundaries:?It's okay to say "no" if you're not comfortable lending or giving money.
• Communicate Openly and Honestly:?Even if it's difficult, it's important to have open and honest conversations about financial matters with your family.

Talking Money with Business Associates

In the business world, clear communication about money is crucial for success. Here are a few tips:

• Get Everything in Writing:?Whether it's a contract with a client or a partnership agreement, make sure all financial details are clearly documented.
• Don't Be Afraid to Negotiate:?Whether it's your salary or the price of a service, don't be afraid to advocate for yourself.
• Maintain Transparency:?Be upfront about your fees, payment terms, and any other financial considerations.

The Bottom Line

Talking about money might not always be easy, but it's absolutely essential for building strong and healthy relationships. By embracing open communication, you can create a foundation of trust, achieve shared goals, and reduce stress and conflict.

So, take a deep breath and initiate those money conversations.

As the founder of Checkmate Tax Advisory, I'm committed to sharing insights on the evolving business landscape. While my expertise provides valuable information, it's not intended as formal financial advice. For personalized guidance, consult with qualified financial advisors. Connect with Checkmate for strategies to thrive in a changing world!

About the Author

Danielle Michel, CPA is a serial entrepreneur and venturist whose expertise spans business consulting, specialized tax solutions at Manufacturing Tax Recovery Services and advisory at Checkmate Tax Advisory, podcasting at The Upside, Downside Podcast , and real estate investing. A passionate advocate for entrepreneurs, she's dedicated to empowering others with the tools at The Suppressed Entrepreneur and mindset to realize their business dreams. In her spare time, Danielle prioritizes health and wellness as a key foundation of her success and that of her businesses.