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» One-third (35 per cent) who plan to marry or live common law say they’ve had the money talk in detail, with 40 per cent saying they’ve only discussed how to manage finances together as a couple “briefly.” » Of those who admitted they haven’t talked about money before the big day or the move-in date, most (83 per cent) said they didn’t know either how or when to address the topic or said they plan “to play it by ear.” » 99 per cent say it’s very or somewhat important to discuss how they will plan and discuss their finances as a couple. Be open and honest The poll findings also show that nearly two-thirds (63 per cent) do not plan to sit down with a financial advisor after their honeymoon or enter into a common-law relationship. Yet, almost a third (31 per cent) say it hadn’t even occurred to them and admit it’s probably a good idea. “There’s a reason why it’s called a marriage ‘contract,’ but unlike typical contractual arrangements, marriage comes with emotion,” says Golombek. “As couples get caught up in the whirlwind of excitement before their wedding, talking about money can be a delicate, very emotional topic, so it does really help to talk to someone who can be impartial, like a financial advisor, to help with difficult questions and concerns.” It’s important to have an open and sincere discussion about finances before you take the big step and have it early in your relationship so your relationship has a solid financial footing, he says. “Perhaps the springboard for
having the ‘big talk’ about money is identifying your and your partner’s philosophies on handling finances,” says Golombek. “If you’re an impulse buyer, and your partner-to-be is a super-saver, he or she may feel your shared goals of saving for the future – for kids, a house, or a car – will be undermined. “You and your partner don’t need to have the same personality for your relationship to be successful, but discussing your personality differences in advance may prevent tension and stress down the road.” TIPS TO REDUCE FINANCIAL STRESS IN YOUR RELATIONSHIP
Don’t avoid the money talk: Once you decide to marry and where you will live together, it is important to talk about how you’re going to manage your household expenses. Share everything: Most useful if you and your partner do in fact share everything. This includes having one joint account and having all of your money deposited into that account. Share expenses: Create a common plan as a couple for all household expenses and fund a shared joint account so that shared expenses are paid from this account.
One-third (35 per cent) who plan to marry or live common law say they’ve had the money talk in detail, with 40 per cent saying they’ve only discussed how to manage finances together as a couple “briefly.” expenses, typically three-to-six months’ living expenses
Assign expenses: While less common in first-time marriages, you may decide in advance which expenses each of you will cover.
Speak to a financial advisor: While couples carefully select a professional to record their wedding, supply their flowers and do the makeup, most have no plans to work with a professional to help set up their joint finances. This is a common mistake that can set your marriage back
Plan for savings: Beyond expenses, talk about your future together and saving for common goals, such as buying a car, a home, big-ticket items such as appliances, starting a family or saving for retirement. Also, set aside money for emergency
A financial advisor can take the emotions out of the money talk by helping couples understand their real priorities and create a joint financial plan based on realistic goals and budgets. These plans are provided free-of–charge by most banks.
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