Money is one of the one of the main reasons for arguments between couples – and the repeated butting of heads over this matter may even lead to a break up or divorce. To protect your finances and your relationship, it’s important to take great care when it comes to your separate approaches to money. This article will help you to better manage your finances as a team and avoid potential disagreements.
Do You Need a Joint Account?
The use of funds in a joint account can quickly become a point of contention between individuals in a relationship. Of course, the benefits of this kind of arrangement are clear. If, for example, you share a house with your partner, it’s useful to combine some of your money in one account so that you can both easily contribute towards rent or mortgage payments, bills and other household expenses. However, if you live separately, it may be worth sticking to individual accounts for the time being in order to avoid problems. Even with a joint account, it’s a good idea to keep your own individual spending money separate for you to do with as you wish, just so that you can both maintain a healthy level of independence. Arguments can arise if one half of a couple begins to overspend using a shared pot of money, or uses the joint account to buy things that don’t benefit the couple as a whole. Avoid this by being careful about where you keep your funds from the offset.
Make Sure You Both Agree on Your Approach
If one of you earns considerably more than the other, you might consider each spending an equal percentage of your overall wages – instead of an equal amount – on your life as a couple. This may include money spent on rent and bills, food, leisure or anything else that concerns both individuals. Whatever your approach, you need to ensure that you are both in full agreement on this matter right from the start.
Make an Equal Effort to Reduce the Financial Burden
If one partner is frugal while the other constantly overspends, tensions can very easily arise. It’s important for both members of a couple to be equally invested in keeping joint finances healthy. For example, it should not be expected that savings shared between partners will be used to fund the education and training of just one of those people. Where suitable, it may be better to take out private education loans, which the relevant individual alone is responsible for paying off.
Be Open About Debt
It’s best that neither partner takes on debt without consulting the other. It’s important to discuss any significant elements of your financial history with your partner early on in your relationship and, in the same vein, you should communicate about new developments in good time. Loans, credit cards and purchases on finance shouldn’t be taken on before a clear approach to each of these matters is decided upon. No one wants to be forced to bail their partner out of debt they never knew existed.