The Money Talk for Couples

Discussion Questions:
1. How can couples achieve good financial management?
There are three common approaches when it comes to budgeting as a couple: merge everything together and share all income and expenses, create a joint account that both people contribute to for shared expenses while also maintaining separate accounts, or keep everything separate and split the bills.
Financial goals for joint-income houses or single-income houses might look different. But regardless of your income situation, your financial goals should share some common themes. You should always have a budget, try to live frugally, get out of debt, have good credit, and save as much money as possible.
2. How can disagreements with your significant other because of money matters be prevented?
Couples often clash over the best way to approach debt, how to handle credit, and how to create and manage a budget. So how do you approach these important financial topics when you and your partner disagree on how to handle finances?
1. Start the conversation. Because finances can be a tricky topic, your first instinct may be to avoid it entirely. However, avoidance will not solve anything, and, if the issue is time-sensitive, pretending it doesn’t exist could make things even worse.
Make sure you handle financial discussions as a conversation, not as an argument or confrontation. Take some time to sit down one-on-one with your partner, with no distractions, and commit to keeping the discussion civil.
2. Be honest. Let your partner know how you really feel about the issues at hand, but don’t be aggressive or confrontational. State your case for why you think the financial situation should be handled your way. Don’t raise your voice, and don’t start picking apart the points you think your partner will make. Calmly present the reasons you think your approach is the best way to go.
3. Listen to the other side. Listen carefully to your partner’s viewpoint on the issues without arguing. If needed, ask questions to make sure you understand what your partner is saying, but don’t interrupt. Your partner deserves the same chance to make the point that you had.
4. Be open to compromise. Can you find a middle ground between your two sides? For example, if you disagree about how much money to begin putting aside for retirement, start with a number somewhere between the two amounts you suggested.
If the discussion gets too heated, take some time apart to cool off. You won’t accomplish anything by yelling at each other. Take a walk outside, watch some TV, anything to give your brain (and emotions) a break. Come back and revisit the issues in an hour or so when you’re both calmer.
5. Know when to end an argument. In a perfect world, all financial disagreements would end in a neat resolution, but the truth is there may be times when you and your partner are unable to find a mutually agreeable solution. If you reach an impasse on an important issue, it may be necessary to stop the argument and evaluate the next steps.
3. Agree or disagree: Not taking on money management roles in a relationship is like forgetting a foreign language. You’ll end up losing some of your ability.
I agree with this statement. I think that in a couple, things related to financial terms, certain roles should be defined. For example, who takes care of the financial house, I mean all of the payments related to the house, mortgage, monthly electricity payment, different payment receipts, or who is in charge to pay daily charges, such as food, and clean products? But in general, I think the responsibility for the global finances of a couple should be a shared responsibility.
4. How do you measure financial success?
Firstly, and the most important step, is to spend less than you earn. That sounds simple, and it is, but plenty of people manage to get it wrong. It is difficult to get into trouble if you spend less than what you’re bringing.
Step 2. Protect what is yours. Insurance is the best defense against the unexpected.
Step 3. Fund your future. You shouldn’t just think in short term, spend money, travel, and enjoy, which is very important but is possible to share think in the short and long term, think about your future to save money, and fund money for your future. How do you see your retirement?
Step 4. Build your wealth. Build your ideal wealth. How do you want it to be? since now, step by step.
5. What’s the one thing you wish your parents would have done differently financially?
I have talked with my father several times about how my father managed his heritage before my brother and I were born. My father and my mother had bought a new house, before my brother and I were born; unfortunately, my father sold his antique house in order to pay for the new one. When my father and I talk about it we regret that my father would sell the antique one because he could have borrowed money to pay for the new one, and ten years next or twenty years next he could have sold the house for an amount of 20 times higher than the price you sold it for or even he could have rent the house for a good number of years and get a monthly payment for its rental. In conclusion, my father did a bad business with this bad decision.

1) Do you handle your finances well? How about your partner?
Yes I do. I live alone so I manage my financials by my own.

2) Have you ever had financial disagreements with anyone?
Yes unfortunately, I had in the past. It was a matter of balance…

3) How can disagreements because of money matters be prevented with your significant other?
I think that “communication” it’s the better solution. Planning and managing the monthly expenses in advance.

4) How can one achieve financial literacy?
I believe it’s a matter of practicing. Make a budget plan and stick to it, commit to saving money every month, being conscious consumer…

5) Why is it important to be financially literate?
Financial literacy it’s really important because it helps to understand some core areas like: budgeting and setting financial goals, paying bills, keeping under control possible loans and credit cards, etc…