17/04/2024
According to research by Aviva, approximately 5% of couples fight about finances every day, while 26% of couples argue about money at least once a week. While half (51%) of couples have joint savings accounts and more than two thirds (67%) have joint current accounts, 38% of respondents said they have "money stashed away" that their spouse is unaware of.
Conversations about finances can often be awkward for partners. The decision to combine financial resources is a significant one for many couples. This blog serves as a guide to navigating discussions about finances with your partner, offering insights into the key considerations involved.
Building Your Financial Future, Together
While managing finances and assets with your significant other might be challenging, it doesn't have to be a stressful or intimidating process if done correctly. However, beyond just merging bank accounts or budgeting for everyday expenses, it’s crucial to consider how you both can secure your financial future, especially when it comes to protection cover, mortgages, and planning for unforeseen circumstances. Remember, there’s no one size fits all approach.
Talk to each other and be honest
Whether it's savings, debts, income, or expenses, being transparent about your financial situation is a good place to start. It might be difficult to be upfront and honest about your finances, but doing so can be very important for establishing and preserving a strong relationship. This transparency is necessary for both immediate budgeting and long-term financial planning, including insurance needs and mortgage considerations. It's equally important to develop a habit of discussing significant spending decisions together. These conversations ensure that both partners have a say in financial matters, by recognising that individual preferences and priorities may differ, finding a middle ground on spending and saving is essential.
Make a financial plan
You may better manage your finances by making a realistic budget. Everything from holidays and date nights to accident protection and private medical insurance should be included in the budget you create. This ensures that you’re not just planning for the life you want to live but also safeguarding against uncertainties that life may throw at you.
Define your financial objectives
Financial planning involves setting financial objectives - what goals do you have for the future? Establishing financial objectives together can not only make your goals simpler to accomplish, like paying off your house in ten years or retiring at sixty, but it can also encourage more honest and open communication about money. Integrating other Owl Financial's services, such as discussing your needs for home and landlord insurance or wills and lasting powers of attorney, can also be a part of this goal-setting process.
Celebrating the wins
You should be celebrating the wins with your partner in your financial journey. When you acknowledge your achievements, whether it's sticking to your budget, reaching a savings goal, or paying off a portion of debt, it reinforces positive behaviour and cultivates a sense of shared accomplishment. These celebrations, even if small gestures, serve as milestones in your financial journey together, to maintain motivation and joy into what can be a challenging process.
Conclusion
At Owl Financial, we understand that managing finances as a couple can be complex, but you don't have to navigate it alone. Whether it's creating a budget that works for both of you, planning for the unexpected, or celebrating your financial milestones, the key is to do it together, with honesty and openness at the forefront. Remember, every couple's financial situation is unique, and the steps outlined above offer a starting point.
Our advisors are here to support you in creating a financial plan that aligns with your individual and joint aspirations. From protection cover and mortgages to planning for life's unforeseen circumstances, we're here to help you build a secure future together. If you're ready to take the next step in your financial journey as a couple, we encourage you to reach out. Speak to one of our Owl Financial advisers today.
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