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How to Discuss Finances with Your Partner Without Killing Each Other

How to Discuss Finances with Your Partner Without Killing Each Other

Money is often cited as the number one topic that couples fight about. This can be incredibly trying, especially when you and your significant other have different views about the ways that your money should be saved and spent. Listed below are a few ways that you can talk openly and honestly about money in your relationship, but of course, no two relationships are the same, so you might have to try several of these tactics in order to find the one that works best for you.

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    Understand Their Background

    Instead of fighting about money, first try to understand how your significant other grew up. Were they raised in a home where they were taught to pinch pennies? Or, were they raised in a home where they were able to buy whatever they wanted? Often, people have difficulty leaving their personal upbringing behind when it comes to creating their own way of managing money. We often mimic the money management systems that our parents use, which might not work when we bring another person into our lives. Understanding why they are the way that they are in terms of finances can help open the door for some clear conversations.

    Establish Trust

    Establishing trust is one of the most important things a couple can try to do when they are managing their money. This can be difficult since many people might wish to buy extravagant things without telling their partners, thus breaking their trust. At first, you might have to resort to only using cash and writing down what you spend, but you should be able to rebuild that trust eventually and communicating within the relationship will become easier.

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    Have a Common Goal

    We should all have some idea of the money we want to save and financial goals we want to achieve, be that taking a trip, paying off credit card debt, or something entirely unique . If you and your partner share the same goal (like a romantic vacation), working together to save the money for it can put a positive spin on managing money.

    Talk To a Financial Counselor

    There are many financial counselors who also specialize in helping relationships: you just need to do an Internet search to find one who can help you plan for your future and understand your partner’s goals and habits as well. Going to talk to a financial counselor can definitely be an intimidating experience, but people often feel so much better after they do, since financial counselors can give you realistic numbers of the amount of money you should be saving and spending. You’ll leave feeling informed, organized, and rejuvenated.

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    Have “Fun Money” Accounts

    Most of the arguments that couples have about finances are in regard to how each person should be spending money—most often, with one partner getting mad or upset that the other has purchased something they shouldn’t have. This can be avoided if each person has a specified amount of money that they can spend on whatever they like. If they want to save for a few months and buy an iPad, they can do that; if they want to spend it all right away on a hundred packs of M&Ms, they can do that too. The important thing is that each person can decide what to do with his or her own “fun money”—this establishes trust and allows each person to get what he or she wants (within reason).

    Manage it Together

    If you find that you and your partner consistently argue about money, it’s time to get organized. Sit down together once a week for a budget meeting so each person is fully aware of how much each other has, and what needs to be done each week to keep your budget in check. This type of meeting can really keep the lines of communication open and encourage each of you to stay accountable for the amount of money you spend.

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    Track Your Money

    Getting into the habit of writing down everything you buy will help you to be aware of your spending patterns, and so much more. Pretty soon, you will consider each purchase and ask yourself if you want to write it down—this keeps you from spending needlessly. If both you and your partner get into this habit, you can be well on your way to attaining financial freedom and having fewer arguments about money.

    The tips and techniques above are not for everyone, and I’m not a relationship expert. I do know from experience, however, that utilizing at least one of them can help your relationship to be more open, honest, and understanding. Every relationship has trying times now and then, and these tips can help you to avoid some of the tensions that can arise when you disagree about money.

     

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    Catherine Alford

    Catherine is the go to personal finance expert for educated, aspirational moms who want to recapture their life passions.

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    Last Updated on March 29, 2021

    Life Insurance: A Secure Way To Protect Your Future.

    Life Insurance: A Secure Way To Protect Your Future.

    Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

    Importance of getting a life insurance

    No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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    On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

    Choosing the right insurance plan

    If you’re about to select an insurance plan, you should consider some important factors:

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    • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
    • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
    • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

    Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

    Differences between life insurance plans

    Here’s a short brief of some plan categories you can choose according to your needs:

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    • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
    • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
    • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
    • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
    • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

    Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

    So what are you waiting for? Plan for your future and live a happier and carefree life today.

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    Featured photo credit: aryehsampson.com via aryehsampson.com

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