Discussing finances with your significant other can be tricky business. Here are some tips.
They say you’re never supposed to talk about money, but in the recession, it’s kind of hard not to. Despite a growing savings rate, there has been massive income loss and a dramatic devaluing or even obliteration of assets. For a lot of us, money is forefront and ever-present on our minds.Read: Money Saving Tips
But should you bring it up in relationships? Absolutely, say CPAs, therapists, love coaches and relationship experts. In marriages, money has always been the number one cause of tension, regardless of whether we’re rolling in it or dining on Ramen noodles.
The California Society of CPAs — in a state where the foreclosure rate is one of the highest in the country — have developed a step-by-step path that they believe will lead to cohabitating financial bliss if applied before heading down the aisle.
Here’s the list:
Step 1: Be are aware of and comfortable with each other’s money personalities. Some of us grew up in families where parents watched every dime; in other families money flowed easily. Some people measure self worth in terms of money and possessions. Some people are natural spenders; others are savers. Understanding your future spouse’s background and values can help avert problems down the road.Read: 10 Questions To Ask Before Saying I Do
Step 2: Discuss short- and long-term financial goals. Setting financial goals helps you develop priorities and define the type of lifestyle you will lead. Break down your goals into manageable pieces. If you want to buy a house in five years, determine how much you need to save monthly to meet the down payment.
Step 3: Become well-versed in personal finance. Parents and schools rarely provide training in personal finance. Work together to develop your financial knowledge and build confidence by taking a course, meet with a financial planner, or purchasing a reputable book.Read: Merge Your Money Seamlessly
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Written by the editors for Recessionwire.com.
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