Whose Money is it Anyway? The Quandary of Yours, Mine and Ours
Do you find yourself pondering these questions:
Where is the best place to allocate our funds? Does my money become our money? Should I set aside a portion of our funds? Where has all our money gone?
These are common dilemmas for many couples aiming to align their finances.
Here are three key aspects to contemplate when contemplating combining finances with your partner.
United we stand, divided we bank
This mantra is very common and may work for some. However, if you really want accountability and live at the highest level of teamwork then one account is your best tool. Sure it can be challenging to get there because our independent minds can go into overtime. But the payoff is that your money is as united as your hearts.
According to the insights gleaned from various sources, an encouraging trend emerges: nearly 2 in 5 couples, or approximately 39%, completely combine their finances, including their checking accounts. Although it would be nice to see this level of financial trust higher it is great to know many relationships value combining their funds fully.
Strong communication goes a long way.
Knowing what to expect only comes when both parties have communicated to each other what they desire. You need to talk about money. And not just once per month. You could have several brief convos or one longer discussion to ensure you are on the same page. But you can’t avoid hard conversations or make assumptions. That could end in financial disaster.
Secrets aren’t cool, but transparency is.
Stashing money, accumulating credit card debt without your partner's knowledge, or sabotaging household plans are fast tracks to isolation. Keeping your childhood friend's confidences fosters friendship while concealing financial matters from your partner amounts to financial betrayal. If you catch yourself being secretive, pause to understand the root cause. Identify your desires and communicate openly with your loved one. Collaborate on a shared plan rather than concealing your intentions.
Ensuring effective fund management as a cohesive team isn't always simple. However, by dedicating time each day to open communication, maintaining transparency, and pooling your resources, you lay a strong foundation for your shared financial future.
Check out this week’s For Better AND Worth podcast episode to gain more insight about how to merge your money with your honey. We weigh in on all the pros and cons.