March 10, 2021
Financial challenges can cause of tension in any relationship. BDO Licensed Insolvency Trustee Michael Comrie explains how to handle these issues.
Couples don’t always talk about money. If only one person in the relationship tracks spending, pays down credit card balances, or puts money aside, it can seem like thankless work. People are sometimes surprised that their partner doesn’t share the same financial habits and goals as they do, and not being transparent with your spouse about finances is bound to cause financial stress in the long run.
Talking about money can be difficult for couples, but it’s crucial for a healthy relationship. Openly discussing your financial habits, debt, and long-term goals can help you and your partner navigate financial challenges together and build a stronger relationship. BDO Licensed Insolvency Trustee Michael Comrie shares his advice for couples navigating financial challenges.
It’s essential to prioritize open communication in a relationship, especially when it comes to finances. Financial issues can create tension, so working together is key. Couples should discuss their income, review household expenses, and set shared financial goals that you can work toward together
This transparency allows you to see potential issues before they become too large to handle, Michael adds.
Michael Comrie says that having regular discussions about money should be a cornerstone of your relationship.
“Unless you’re having regular conversations about money, one partner’s going to potentially feel anxious or overwhelmed. So, talking about money with your partner, at least monthly, can help you stay on top of things.”
Recognizing that each partner may have unique financial habits—one might save more, while the other might lean towards spending—can help address differences early before they become bigger issues.
Coming up with long-term financial goals and revisiting your progress on achieving them is key to staying connected financially, not just once a year but as an ongoing part of the relationship.
Being open and honest about your debt problems is crucial for the health of your relationship. Hiding debt or other financial difficulties can lead to misunderstandings, resentment, and additional stress.
“If you’re keeping a secret about your finances from your partner, it’s not going to get better over time. Eventually, that information gets revealed. Even if it’s many months or years down the line, it’s only going to exacerbate the problem and make it that much more difficult to deal with,” says Michael Comrie.
It's easy to see why someone might feel hesitant to share financial difficulties with their partner.
Often, there's a fear that being honest about financial struggles could jeopardize the relationship—especially when dating someone who values financial prudence and openly discusses their saving habits.
Understanding each other’s financial situation, including debt, allows you to navigate challenges together.
“If you’re not being honest about each of your spending habits or overall financial health, you’re going to have common, frequent, ongoing arguments. Whereas if you address those at the outset, you’re likely to avoid those types of frictions,” says Michael Comrie.
Creating a budget as a couple can be a challenge for some. As it’s unlikely that you earn the same amount of money, it can be difficult to divide up the financial responsibilities in a way that both partners feel is fair.
Some couples believe that the percentage of the expenses that one covers in a household should be proportionate to their income.
Another way of breaking down spending is finding roles for each person. One of you is responsible for paying for grocery shopping and the other for paying for utility bills and car payments, for example.
This helps prevent resentment over unequal contributions and ensures both partners feel they are on equal footing.
You want to avoid having one partner feel like they’re more responsible for tracking and paying for more of the household expenses than the other. This will prevent one partner from feeling resentment towards the other and their lack of contribution to the household budget system.
Creating an emergency fund can help relieve financial stress and allow you and your partner to plan for the future.
An emergency fund serves as a safety net, which can help you get through unforeseen financial events such as job loss, unexpected car maintenance, or urgent home repairs.
“By setting aside money regularly, it can help ensure you don’t have to rely on credit cards or loans,” says Michael Comrie.
If you can create an emergency fund that could cover three to six months of your spending, then you and your partner will be in good shape should the unexpected happen.
The key to creating an emergency fund is to set aside money each month for it. You can begin by setting up a dedicated savings account that is easily accessible but separate from your regular checking account. This will help prevent you from dipping into your emergency savings for non-essential expenses.
Both partners should contribute to the fund regularly, whether through automated deposits or by transferring a set amount each month. As with the budget, you should adjust the contributions proportionately to your income to ensure these contributions feel fair to both partners.
If you and your partner are struggling with financial challenges, reaching out to a Licensed Insolvency Trustee, like Michael, can provide you with support and guidance.
Licensed Insolvency Trustees are federally regulated professionals who specialize in helping individuals and couples navigate financial difficulties. The first consultation is free and there are no obligations. Discussions are confidential; you can rest assured and talk about your financial situation openly and without judgment.
March 10, 2021
Financial challenges can cause of tension in any relationship. BDO Licensed Insolvency Trustee Michael Comrie explains how to handle these issues.
