Thrifty Thinking: Finances and Your Relationship

Millions of couples will be discussing marriage this Valentine’s Day, but will be headed for divorce unless they learn to talk about money from the start.  

 

Poor communication and finances are often top reasons for divorce, and more than half of all couples don’t make time to talk regularly about their finances—according to a 2012 survey by the American Institute of CPAs and Harris Interactive.

 

So, this Valentine’s Day, make the day and your relationship stronger by following these five tips from the AICPA’s National CPA Financial Literacy Commission.

 

·         Get full disclosure. Before saying ‘I do’ to moving in together or combining assets, talk honestly about finances as part of a joint financial planning process. A routine review of credit card accounts, bank statements and credit reports will keep the conversation going.  

 

·         Set a money date night. Set aside a specific time to talk about finances. This ensures an ongoing, open dialogue about money when both people are free from outside distractions.

 

·         Divide and conquer. Split the financial duties. One person can act as bill payer, the other as money tracker, for instance. This removes the burden from one person and provides a check-and-balance on the family finances.

 

·         Consider account options. Some couples have joint and separate accounts.  The joint account is paying bills and the separate accounts are for discretionary spending. Decide what is best for your relationship.

 

·         Hire an advisor. A financial advisor can work with couples to establish financial goals, pay bills, monitor accounts and help notice any unusual spending patterns, should they arise.