Discussing money isn't exactly the highlight of a relationship, but it's crucial if you want your love story to thrive in the long run.
Why bother?
Well, money troubles are like jointly assembling flat pack furniture – they can cause a real strain. In fact, research back in 2020 suggests that about one in five Kiwis think money woes put pressure on their relationships. And since then, we have had the ‘cost of living crisis’.
Here's how you can tackle the money conversation together:
Get your money mindsets aligned.
Money's a personal thing, and we all have our quirks about it. Your partner might be a saver, a spender or somewhere in between – and that's okay. Have a talk about how you both view and handle money. This doesn't mean you have to agree on everything but understanding each other's perspectives can make those money chats less of a headache.
Set goals together.
Yearning for a world trip? Or a new boat? It's important to be on the same page about your big goals. Different dreams don't spell disaster, but they do call for communication and planning. Be clear about your goals, timelines and how it'll affect your lives together. Remember, it's a two-way street – listen to their dreams with an open mind too. If you both know where you want to end up, it makes the journey that bit easier.
Open up about your financial reality.
Honesty is the bedrock of any solid relationship. As things get serious, being open about your earnings, debts and credit history matters. This isn't just about transparency; it's about building a foundation of trust and understanding. It helps plan for the future, highlights any hurdles that you may face together and avoids any surprises that could be a strain later.
Create a joint budget (but keep it flexible).
Pooling your resources can open doors to new experiences and opportunities. How much do you want to put aside for your joint long-term goals? Just like for an individual, having a budget is an exercise in financial discipline. If you can master it, it could help you reach your goals faster. Just remember to leave some wiggle room in your budget – life's too short for penny-pinching all the time. And checking in with your partner about every cup of coffee can be wearing, so you can make a rule that just major purchases are discussed.
Honesty, openness and transparency help make a relationship last, and money needs to be part of the conversation. Talking and listening in an accepting environment will help keep your shared goals and needs in sight and on target.
Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular person's objectives, financial situation or needs. Any opinions contained in it are held by the author as at the report date and are subject to change without notice.