Whether you are about to move in together, start a family or open your first joint bank account, how you handle money with your partner is important. Here are some top tips on managing money with your partner and keeping both your relationship and bank balance happy!
Talk, talk, talk
It is important to be on the same page when it comes to finances or at least agree to meet in the middle. If you are a savvy saver, but your partner likes to spend, spend, spend, then establishing some rules and goals can help. For example, where do you see the relationship in one year, five years’, or even ten years’ time? Do you want to buy a house, have a family or travel the world?
Setting out your goals can help when it comes to thinking about saving versus spending. It is also important to consider who will handle your finances. Who will pay the bills and the mortgage? Will you or your partner do it, or will you share the responsibility?
We’re not saying to discuss these finer points over dinner on a first date, but talking about these things early on lets you know where you both stand. It also pays to come up with a budget for the household together and keep important financial documents and bills in a place where you can both access them easily.
Sharing is caring
If you put both names on the bills and mortgage or rental agreement, it makes both partners responsible for them. Many couples find splitting everything down the middle the easiest way to handle the finances. However, this isn’t always so simple – when only one of you is working, or when you have a family and have to make do with one wage for a while, for example. Discuss how you will handle such events.
There are other benefits to doing things jointly, too. If you both take out car insurance with the same provider, you might be entitled to a family discount. The same goes for health insurance.
Don’t be blinded by love
Even if you think your partner is the best thing since Netflix, things can change. Approach each financial situation with a clear head. Be aware that even if you hold a joint mortgage, for example, and your partner fails to make payments on it, you could be liable for the whole amount. Likewise for most other loans and joint credit cards.
If your partner spends big and then can’t repay their credit card, you could be liable for it. Read everything yourself, getting legal advice if you have to, before you sign any documents.
Seek help if you need it
Chances are, you and the love of your life will stroll happily into the sunset together. But, we all know that sometimes life doesn’t work out the way we planned.
If financial troubles are impacting your relationship, you could consider counselling as a first step to sorting the issue. It is also important to understand the signs of financial abuse – where your partner controls your money against your wishes. If you think this could be happening to you, get help now. Contact 1800 RESPECT (1800 737 732) or visit the website.
DISCLAIMER: This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not a financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.
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