Love and Money: How to Manage Finances Equally

Managing finances should be a team effort, and this Valentine’s Day is a great
opportunity to take inventory to ensure your team is playing in unison, says
CFP Board Ambassador JJ Burns, CFP®

The topic of money has always been a leading cause of stress in a relationship. Often, conversations about money are pushed aside for another day or pushed under the rug all together. However, the key to a healthy relationship comes down to open and honest communication, and this is especially true for conversations about your joint finances, says CFP Board Ambassador JJ Burns, CFP®.

“While there is no ‘one size fits all’ approach to managing finances, it is essential both parties are active participants in critical conversations, like those around your finances,” says Burns. “Once you are married, many financial details become entwined with your spouse’s, so maintaining open, honest and constructive conversations about your debt, savings goals and budgeting plans will help you and your partner maintain transparency when it comes to your joint finances.”

Whether this is your first conversation about money or your hundredth, Burns highlights the top three financial topics you and your significant other should cover to better manage your finances together:

• Commingling Credit: Once you’re married, your credit score no longer stands alone. Be honest about existing debt, from the beginning, so there are no surprises down the road.
• Drafting a Budget Together: Lay out your joint income and expenses – both combined and separate. Once the two of you have a realistic idea of your cash flow, work together to create a monthly budget that works for both of you.
• Planning for the Future: Be candid about your long-term financial goals. If you want to retire to a secluded log cabin in the mountains or travel the world with your significant other, communicate those dreams so that you can prepare for the future together. 

Read Burns’ full blog post here with more details.

For more guidance on ensuring you and your partner clarify your goals and get on the right track together, talk to a CERTIFIED FINANCIAL PLANNER™ professional today or visit www.letsmakeaplan.org