PENSACOLA MAGAZINE
NAVIGATING
THE TALK FINANCIAL ADVICE FOR NEW COUPLES BY DAKOTA PARKS
Talking about money can be viewed as a taboo topic for a lot of people, but starting the conversation early with clear communication and goals to plan ahead can save a lot of grief down the line. The median age for marriage in the United States is 27.4 for women and 29.5 for men. That means many couples may already have established careers, own their own homes and have their own savings and bank accounts, which makes having a financial conversation before marriage more important than ever. Data shows that money is one of the most common causes of relationship stress and even divorce rates. According to research by the financial firm TD Ameritrade, 41 percent of divorced Gen Xers and 29 percent of Baby Boomers claim they ended their marriage due to disagreements about money. Pensacola Magazine caught up with financial advisors Jacey J. Cosentino and Chesley Allegri from the Radcliff-Schatzman Group at Morgan Stanley to discuss ways for couples to navigate the financial talk before marriage and for new partners approaching the topic of consolidating finances. Both Cosentino and Allegri agree that the best place to start is to get comfortable talking about money and future aspirations: “One of the best things you can do to help ensure the success of your relationship is to get comfortable talking about money,” they explained. “Take the time to respectfully listen to each other’s vision for the future—where you want to live, what type of career you want to pursue, if you want children and how you want to retire. Routinely talk about lifestyle expectations and your financial well-being as a couple or family so that it becomes part of your routine, rather than a hot topic.” Here are some financial planning tips and conversation starting points from Cosentino and Allegri to help new couples maintain a healthy money relationship from the very beginning. ―24―
WHERE TO START If the subject of money is not incorporated early on in a relationship, it can become a point of contention, which makes it nearly impossible to talk about. First, schedule a quarterly money date. Get to know your partner’s money personality: some people are savers, some are spenders and some avoid the topic all together. Next, establish common money goals. Once you know what these goals are, establish how much you are each going to contribute toward your goal every month and stick to it. An equal amount or equal percentage of income is often the easiest way to do this. Lastly, agree on an individual spending limit. This is especially relevant if your finances are merged. To avoid the negative connotation of having to “ask for permission” to spend money from a joint account, agree that any purchases above a set limit must be discussed and agreed upon together.
PROS AND CONS OF MERGING BANK ACCOUNTS Before a couple decides to merge bank accounts, a budget might need to be implemented and agreed upon. It helps to be on the same page as to what should be spent on rent/ mortgage, cars, insurance, eating out, shopping, charity, vacations and so much more. Simply Googling “how to
