Who calls the money shots in your relationship?

Who calls the money shots in your relationship?

Who calls the money shots in your relationship?

When it comes to all things money, how are decisions reached in your relationship? Is everything up for discussion or do you each take the lead on different financial matters?

The recent UBS Own Your Worth report based on a survey of 1700 married couples in the US revealed some interesting findings about who takes charge in money matters. 88% of women in same-sex couples and 90% of women in heterosexual couples are fully in the know about their family’s accounts. But the majority of women surveyed – 56% – will expect their spouse to take the lead on decisions about investing and financial planning.

So we’ve put together a short quiz for couples– married or de facto  – about who calls the shots when it comes to finances. If you’re in a relationship right now, let’s see how you roll with making money decisions, big and small, and whether it might be time to start sharing the responsibility with your partner.

1. Who would you describe as being more active in managing money in general?

  1. Me
  2. My partner
  3. We’re both pretty active/responsible when it comes to money
  4. We’re both pretty relaxed about money

2. Who makes sure your essential household bills are covered – mortgage/rent, groceries, utilities?

  1. Me
  2. My partner
  3. We share this responsibility
  4. It’s more a matter of luck than planning

3. Who deals with making personal insurance arrangements – income protection, life and TPD insurance?

  1. Me
  2. My partner
  3. We share this responsibility
  4. We don’t have any personal insurance

4.  Do you know how much money you owe as a household – including mortgage and personal borrowing?

  1. Yes
  2. No, but my partner probably does
  3. Yes, and we have a plan for reducing our debt over time
  4. Not a clue

5. Who takes the lead with retirement planning in your relationship?

  1. Me
  2. My partner
  3. We share this responsibility
  4. It’s not something we’ve discussed

6. Who takes the lead with making investment decisions in your relationship?

  1. Me
  2. My partner
  3. We share this responsibility
  4. It’s not something we’ve discussed

7. When it comes to making a big spending decision – car, holiday – who is likely to have the final say?

  1. Me
  2. My partner
  3. We make most big spending choices together
  4. There isn’t really a process, we just go ahead and do it

8. If you were to inherit a large sum of money, who would decide what to do with it?

  1. Me
  2. My partner
  3. We would talk about it and reach a decision together.
  4. I don’t think we’d waste much time deciding how to spend it.

Mostly As

When it comes to all things money, you’re definitely in the driving seat. For spending or saving your income, you call the shots and get to decide whether it’s the holiday, new car or  mortgage that comes first. Chances are you’re also fairly up to speed on the finer details of your financial housekeeping, such as what’s going on with your super.

While it’s great to have one half of a couple that’s in the know and taking responsibility for your money, it can put your other half at a disadvantage. By not taking part in decision making, your partner is very much in the dark about your financial position now, and where it’s heading. That may be just the way they want it, but both of you could end up at a disadvantage. You’ll be stressed if money matters are getting out of control and your partner may one day find themselves facing some unexpected and harsh financial realities.

By pulling together on your finances, you could bring benefits to your whole relationship as well as giving both of you a chance to be clear about where you stand financially. Talking about your current money situation and future goals with a CERTIFIED FINANCIAL PLANNER® Professional can be a great way to get you both on the same page.

Mostly Bs

When it comes to all things money, ignorance is bliss where you’re concerned. You wouldn’t hesitate to hand over $10 for a loaf of bread – it’s only money, and what things cost really doesn’t concern you. As for saving, it might happen for you in a quieter month, but by accident, rather than design.

Leaving the money management to your other half may well be the perfect division of labour from your point of view. But what would you do if your partner travels, falls ill or you end up going your separate ways? You stand to lose more than your relationship if you stay in the dark about your finances. And when you know what’s going on with money, it can actually be a trigger for making exciting decisions about your future, as one half of a couple or when you go solo.

By pulling together on your finances, you could bring benefits to your whole relationship as well as giving both of you a chance to be clear about where you stand financially. Talking about your current money situation and future goals with a CERTIFIED FINANCIAL PLANNER® Professional can be a great way to get you both on the same page.

Mostly Cs

If sharing is caring then you’re a couple that’s very involved in your finances. You’re making joint decisions, being honest about what you earn and spend and what you expect from your future together – in terms of lifestyle goals and the money it will take to achieve them.

Sounds to good to be true? You might also be a couple that are united on money matters, but struggling to keep spending under control and make financial choices based on what’s really important to you. You might be on the same page about getting into debt to finance your next holiday, but that may not make it the best decision for your finances or your relationship.

By taking a closer look at how you’re dealing with money, you’ll both have a chance to be clear about where you stand financially. Talking about your current money situation and future goals with a CERTIFIED FINANCIAL PLANNER® Professional can make managing your money easier, and ensure you’re on track to achieve your joint lifestyle goals and dreams.

Mostly Ds

You’re one half of a couple that lives in the moment and trusts to luck with your finances. Money comes and it goes and you’re both pretty happy to spend and manage it in a ‘one day at a time’ kind of way.

Maybe this has worked out for you so far or perhaps you’ve run into some trouble, thanks to your free and easy way with money. By trusting the future to take care of itself, you might be making some ad hoc spending decisions that will have an impact on what’s most important to you – whether that’s career, travel, or family and friends.

By taking a closer look at how you’re dealing with money, you’ll both have a chance to be clear about where you stand financially. Talking about your current money situation and future goals with a CERTIFIED FINANCIAL PLANNER® Professional can make managing your money easier, and ensure you’re on track to achieve your joint lifestyle goals and dreams.


Online source: Produced by The Financial Financial Planning Association of Australia and published on 25 October 2018.  Original article.

Money & Life By The Financial Planning Association of Australia


 

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