Financial Topics Couples Should Discuss - Money Tip Tuesday

How often do you talk with your spouse or partner about money? Are you even on the same page when it comes to finances? The truth is, if you’re married or in a serious relationship there are some important financial topics you should discuss.  

Links: 

• For budgeting resources check out:
  • You Need a Budget (YNAB)
  • Ramsey Solutions
  • Triangle Credit Union webinars 
• Learn about Triangle's financial planning resources 
• Check out other financial resources and blogs at TCU University

Transcript:

Welcome to Money Tip Tuesday from the Making Money Personal podcast.  

If you’re in a relationship, there’s a good many things you need to work together on, and finances aren’t any different.  

For some people finances are that sort of thing that most don’t want to discuss at all. I mean, it can turn a civilized conversation into a knockout drag out fight. 

But, the reality is that some of these topics should be talked about, and for many people, sooner rather than later.  

Here are six financial topics couples should discuss: 

The first topic couples should discuss is budgeting.  

For most couples, particularly married couples, this is a must. The purpose of this is to work together to determine how much you make and where it’s all going every month.  

If you’re new to this, get started by watching some videos, attending a webinar, or reading some books. Then, armed with the knowledge of how to properly set up a budget system, take some time, sit down and do your budget. Make it a date. Try ordering takeout or cook a special meal to make it feel more of a fun event rather than a chore. 

If you need some help, check out resources like You Need A Budget (YNAB), Ramsey Solutions, and Triangle Credit Union webinars, available to watch on YouTube. 

The next topic couples need to discuss is savings and retirement. 

Like the last one, this one also applies more to married couples, but for single people however, it might not be a bad idea to get an idea of where your partner stands when it comes to spending. It’ll give you a peek into how compatible you two really are. 

When discussing spending, ask each other what you’re saving for, both as a couple and as individuals. Determine whether you have an emergency savings account and how much you’ll need to fully fund it. Having a proper savings plan ensures that your financial future will be secure. 

Are you both planning to retire and when? Make sure you’re discussing retirement goals and how working to reach those goals affects your savings rate now. If you’re going to build your financial future together, you need to give it the best foundation possible by having a healthy emergency fund, good savings habits and a well-planned retirement strategy.  

The third thing to discuss is goals.  

If you have wishes and goals, your partner likely does too. You need to talk about what those goals are and how they affect your finances in both the near future and distant future.  

Start with short term goals. As a couple, do you want to save for a downpayment? How about paying off a credit card? Or perhaps paying down a set portion of your student loans? 

When it comes to long term goals, look a little farther out. Depending on where you are in life, do you want to finally own a home? Get completely debt free? Maybe buy a second home? Plan a once in a lifetime vacation? 

The best way to achieve goals is by determining where you want to be or what you want to achieve as a couple, laying out the steps you’ll need to get there and work hard and keep focus to meet that goal at its appointed time. Set up a timeline, determine milestones and remember to celebrate once your goal is reached. 

The fourth topic to discuss is whether you’ll have separate or joint bank accounts. 

If you’re not married, then keeping accounts separate is the better plan. 

If you’re married, the typical choice is to combine finances. Though there are many cases where husbands and wives continue to manage their own money, in many ways combining finances and accounts forces you to make the financial decisions together as one household rather than two separate individuals with their own goals.  

If you are married and choose to keep your accounts separate, that can work too. Just make sure that you’re both fiscally mature and communicate about everything. Keeping an open conversation about spending, saving and the like will keep the stress down and ensure you’re both still on the same page. 

The fifth topic is to discuss what you’ll teach your children when it comes to money. 

If you have kids, or plan to have them one day, talk about what you’re going to teach them when it comes to money. Will they have chores? Get an allowance? How much?  

Will you teach them how to budget? How old do you think they should be when they get their first job? 

You and your spouse should discuss all these questions so you’re both on the same page when it comes to raising your kids in a financially responsible way. 

The sixth topic to talk about is Insurance. 

For couples, this is definitely not the most exciting topic at all, but it’s important to have this discussion. Because there are so many different types of insurance coverage for a variety of things from houses and cars to pets and identity, you need to talk about which ones would benefit you most as a couple and household.  

Insurance costs money, so just because your spouse thinks you need that special coverage doesn’t mean it’s best for you both to dish out the extra money each month. Have a discussion to decide on the most beneficial types of insurance for your lifestyle and select the plans that you can reasonably afford.  

If you’re not sure where to start when it comes to insurance, meet with a financial planner who can steer you into the right insurance plans with the proper coverage and premiums for your current financial situation. They’ll also help reassess any existing plans and provide alternate options to keep up with the many changes that can occur in life. 

That’s it for this tip with six financial topics couples should discuss.    

If there are any other tips or topics, you’d like us to cover, let us know at tcupodcast@trianglecu.org.  Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  

Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  

Have a great day!