When you’re in a serious relationship and thinking about a future together, it’s really important to talk openly about different parts of your lives. The secret to a strong, long-lasting relationship is agreeing on major life decisions.
You and your partner should discuss things like how big you want your family to be, if you plan to buy a home, and what your career goals are. If you’re not on the same page with these things, misunderstandings could put a lot of strain on your relationship and might even break it.
While many couples talk about these big topics, one often overlooked is finances. Money habits and financial goals play a huge role in both of your lives. Although it might be awkward, discussing your financial situations and expectations is essential for a stable financial future. Here are five important money-related conversations to have before committing long-term.
1. CAREERS & CHILDREN
Discuss whether you both want children and how many. This isn’t just about family size; it also includes money-related issues like the cost of childcare, changes in careers when kids come into the picture, or the finances needed for fertility treatments.
2. DEBT (NEW & OLD)
Be honest with each other about any debt you have, whether it’s current or from the past, before you get married. Once married, your financial responsibilities become shared ones. Make a plan to manage any existing debt and agree on how to handle future debt, credit card use, and debt repayments.
3. FINANCIAL HABITS
How you grew up influences how you handle money, and your partner might have different habits. This could lead to problems. To avoid financial conflicts, discuss your money habits early, look at each other’s budgeting methods, talk about how you spend money on non-essential items, and figure out how to manage any differences.
4. FINANCIAL GOALS
Everyone has personal financial goals like paying off debt, saving for trips, or buying a house. When in a relationship, your goals should align with your partner’s. Talk about what you both want to achieve financially, prioritize these goals, and make a plan to save together.
5. RETIREMENT PLANS
Even if retirement seems far away, it’s best to start planning early. Discuss what you both picture for retirement, including when you want to retire, how you’ll manage retirement funds, planning for long-term care, and what activities you hope to enjoy during retirement.
SUMMARY
Talking about money is often avoided, even among couples. Some don’t really understand their partner’s financial situation or habits until after marriage. But to keep your relationship strong and avoid tension, it’s vital to be on the same financial page. Whether you’re already committed or planning to get married, take the time to have these important financial conversations.
How can you balance spending habits with your partner? What strategies can make sure you have these crucial financial discussions?