12 Money Tips for Couples
Financial decisions can cause stress and tension for couples. Unfortunately, the impacts of poor financial planning go beyond your wallet to your life's social and emotional side.
So, whether you've just married or have been together for years, you have a chance to improve your financial life. Read on to learn more tips for couples looking to improve their personal finance.
12 Money Tips for Couples
Money is a sensitive topic that can put a strain on your marriage. Fortunately, you can follow these money-saving tips to guide you into a healthy financial situation.
1. Be Honest
One of the best tips for saving money is to set aside quality time free of interruptions to have a meaningful discussion about your personal finance and any money issues with your spouse. Be frank about your monthly income or sources of income, as well as your financial habits, debts, and other related matters. If any significant changes happen to your financial status, don't hesitate to let your spouse know.
Be candid when you notice bad money habits from your spouse, but don't be critical or judgmental in your approach. Consider financial therapy if you repeatedly notice and talk about poor financial habits.
2. Understand Each Other's Financial Tendencies and Habits
Financial habits can surprise you if you don't understand your spouse's money personality. But, if you do know, then you can approach each other's spending habits more maturely and make compromises.
The typical money personality falls into at least one of five categories. Here's an outline of how to handle different habits:
Debtors
Don't spend more than you can afford. Instead, set and adhere to your budget. And pay off a part of your debt before spending on other things.
Investors
Set up emergency funds and save on basic needs before making costly investments.
Savers
As much as you should save for your goals and plans, learn to reward yourselves for your efforts.
Spenders
Discuss the effects of short-term satisfaction, and focus on your long-term responsibilities to avoid unnecessary purchases.
Shoppers
You don't always have to buy every good thing you see. Avoid purchases that cost you more than you can afford
3. Discuss Financial Priorities
Your priorities may differ from your spouse's. First, you should identify elements that are a priority to both of you. Then, broaden out to include individual preferences.
If you don't understand why certain factors are a priority to your spouse, raise the concern early. Be ready to compromise to get better deals.
For example, if you prioritize a house and your spouse prioritizes a business, weigh the weight of the two. If a business makes it easier to buy a home, you can compromise and prioritize the business.
4. Assign Roles and Responsibilities
One of the best money-saving tips is to settle on a formula for sorting out paying bills. Money roles and responsibilities don't have one-size-fits-all. What works for other couples might not work for you.
Formulas to share roles include the 50/50 rule or a ratio based on income. The 50/50 rule lets each of you foot half of the shared expenses. Proportion based on income means whoever earns more foots most of the bills. You may also decide to have each of you settle specific bills single-handedly.
5. Track Spending
Check how you're spending money throughout the month with software or a money journal. You may find the task difficult initially, but there's a lot to gain when tracking spending. For example, you can meet your savings goals and objectives, identify you and your partner's financial habits, and stick to your budget.
Keeping track of spending is holding you accountable for your plans and will help to weed out bad habits.
6. Set Realistic Short and Long-Term Goals
You may never make real progress towards a goal unless you set effective goals. So, be sure to talk to your partner about your goals.
Often, your goals differ from your spouse's, so write down all your goals and their ideal and reasonable timelines, and then discuss everything so that you can agree on which goals to start with.
After you've written all your short-term and long-term goals, decide how you will save for each, especially the ones that you want to achieve most and/or soonest. If your long-term goal is to buy a house, for instance, determine whether you will take a mortgage and how to repay the mortgage debt.
7. Build a Budget Together
One of the best money management tips is to set up a budget. First, categorize your finances into:
Personal and irregular expenses
Bills (you may want to break this down further, i.e. utilities, TV, groceries, etc.)
Debt repayments
Professional expenses
Savings/Emergency Fund
Then, set aside funds for emergencies.
If any expenses arise from either of you and you think the cost is unnecessary, speak out. Understand why your spouse wants to have or exclude the expense and agree on the way forward.
8. Use Software Designed for Budgeting
Budgeting software ensures that you track and stick to your budget. But before settling on one, agree with your spouse on which app to use.
***Most people don’t know this, but there are actually financial tracking apps built specifically for couples!
Some apps link to your bank account, and others offer extra features to monitor your credit score or investments.
Opt for a simple, affordable app that has user-friendly features. With a reliable app, you can achieve your goals, develop a robust financial future, and tackle joint finances and expenses.
9. Identify Impulse Spending and Tempting Purchases
You may have made an impulsive or tempting purchase at some point — after all, you’re human!
However, some people struggle with the habit more frequently. If you don't, your spouse could be among the victims, and the associated financial impact is stressful.
When one of you buys unnecessary items and doesn't consider the consequences, your household could have little left to save. In some cases, tempting purchases result in debts. So, identify what comprises unnecessary expenses, and work together to avoid such habits where they don’t fit within your budge.
For example, you don't always have to buy new clothes to appear more trendy unless you can afford them. On the other hand, if that’s a top priority, talk about how you might be able to make that fit into your budget and financial plan.
10. Teamwork
How your household earns and spends is dependent on the situation. However, financial matters can be overwhelming if only one party puts in the effort. Besides, money talks aren't a one-time thing.
Always have regular conversations to gauge your money-saving tips and address other financial issues. For example, let your spouse know if you want to withdraw a large amount from the account, especially a joint account.
11. Regular Financial Check-ins
First, keep a book or track your expenses and decide which of you becomes the bookkeeper. Then, review your book together throughout the year, say, once every month. Check whether you've stayed up to your financial goals and plans or drifted away.
If you didn't stick to your budget, identify the reason and work on the cause. Also, if you have plans for non-regular activities like vacations, decide how to approach the cost of such activities. Regular check-ins keep you accountable for your goals and encourage you to return to sound money habits.
12. Celebrate Your Successes
Pat yourselves on the back whenever you achieve a goal or financial objective. Whether it's a long-term or short-term goal, celebrate every win, no matter how small.
A celebration doesn't have to drain your pockets. You could go for a road trip, a dinner date, or even buy gifts. The little motivation encourages you to push forward with your plans and goals.
Money Don'ts for Couples
Tips for saving money require you to talk about your finances. but some behaviors and attitudes should not be a part of handling money matters.
Don't Avoid the Talk
Many couples are afraid to discuss finances because of possible disagreements or fear of the outcome. Nonetheless, you don't solve anything if you avoid talking. Instead, you set yourself up for further tension and financial errors.
Effective communication is necessary to understand your partner and streamline your goals.
Don't Ignore Your Partner's Actions
At times, you split responsibilities, so everyone plays their roles, and that's it. Don't ignore it if you notice that your spouse is no longer responsible or has developed poor financial habits. Be upfront and discuss the changes to find the cause and solutions.
Don’t forget to acknowledge their financial efforts, as well, even if it’s just what you had already agreed on — a little affirmation can go a long way.
Don't Neglect Your Future Financial Security
Many tips to save money affect how you will spend and enjoy money in the future. So, think and plan for the future you want. For example, if you want to have kids, then have a solid plan to raise your kids without financial strains.
FAQ
Different questions about money tips for couples, and tips for making money, arise when money gets mentioned in marriage. Here are three common questions that get asked.
What if One Partner Has a Lot of Debt?
Talk about your debt with your partner, then decide whether you will pay the debt together or not. In many states, debts incurred during the marriage may be joint debts, and either spouse can be charged or held responsible for them. So, don't keep your debt from your partner because such secrets break trust and can also leave them financially unprepared.
How Should Married Couples Divide Their Money?
The ultimate decision on how to divide money in marriage is based on your agreement with your partner. Share your current financial status, and decide on the ideal approach for your household. Based on your decisions, you can have a joint savings account, separate personal accounts, or both a joint and separate account.
Whether or not you have a shared bank account, I do generally recommend that my clients have at least some shared financial commitments, i.e. splitting the electric bill, or work towards that.
What's the 50-30-20 Budget Rule?
The 50-30-20 budget rule states that you break your after-tax income into percentages. Then, spend 50% on your essential needs, 30% on things you want, and save 20% on plans, goals, and investments. While I encourage couples to customize their financial plans, this rule can serve as a helpful benchmark that you can review at the end of the month to check if you overspent on any category.
The Bottom Line
In marriages, financial health matters aren't always easy to handle, but you shouldn't be afraid. These money tips for couples are available to guide you to financial success. If you want further financial tips for couples on saving money, don't hesitate to contact the Couples Financial Couch. Click here to take the "What's Your Couple's Money Personality Type?" quiz now!
Want to level up your game around money in your relationship? My free quiz will help you learn your Couple’s Money Personality Type AND how you can grow from there!
Adam Kol is The Couples Financial Coach. He helps couples go from financial overwhelm or fighting to clarity, teamwork, and peace of mind.
Adam is a Certified Financial Therapist-I™, Certified Mediator, and Tax Attorney with a Duke Law degree and a Master's in Tax Law from NYU. He is a husband, dad, and musician, as well.
Adam's wisdom has been shared with The Wall Street Journal, the Baltimore Ravens, CNBC, NewsNation, and more.
