When you’re in a relationship, you don’t necessarily have the exact same view towards money as your partner. However, this does not mean you should avoid talking about your finances altogether. Rather, it makes those conversations about money all the more important.
Honesty is Key
First things first, make sure you’re honest with your partner about your financial situation. Lying about things like debt or money troubles can create huge problems in the long run. Relationships should be built on a foundation of trust, and this trust extends to your finances.
In 2017, a survey found that 28% of those in relationships lied to their partner about spending money. In addition to this, 26% stated that they would not trust their partner to make financial decisions for both of them.
Being financially incompatible can cause huge problems in a relationship, as it creates a space for lots of disagreements and possible secrecy down the line.
It’s a good idea to try to start open and honest conversations about your finances, even if you find this uncomfortable at first. For more info on why talking about money with our loved ones is so important, check out this blog.
Work Out What’s Best for You
There is no one right way to manage your finances in a relationship. You should figure out what method of dealing with your finances is right for you and your partner. This may be:
- Having a joint account for all your expenses
- Having a joint account for certain expenses, such as the weekly food shop or your rent/mortgage payments
- Having separate accounts but both contributing to all joint expenses
- Having separate accounts and dividing who pays for what, e.g, one pays for rent, one pays for food
In 2018, Experian found that 15% of UK adults said they’d been negatively impacted by their current or ex partner’s credit history.
Therefore, if you do have any joint accounts in your relationship, it’s a good idea to keep an eye on the balance, to ensure there is always enough for any direct debit payments. This is because with joint accounts, you are both responsible for any payments, so you don’t want this to affect your credit score.
If you are financially associated with someone and go through a break-up, you may wish to check out this blog on protecting your credit during break-ups and divorce.
Compromise
Managing your finances in a relationship is not about forcing your partner to adopt the same view towards money as you. Rather, you should try to understand the differences in how you view money, why you both view it the way that you do, and how you can meet in the middle.
For example, if one of you is a big saver and the other a big spender, you could establish an automatic transfer to a savings account each month but also leave space in your budget to enjoy yourselves and spend money.