Couples fight more about moneythan anything else.
Getting on the same page, financially can be tough.
To make things easier, talk about a few important topics when the relationship starts to get serious.
Down the road, you might be surprised to learn your partner’s financial habits or history.
Knowing this information in advance can help you prepare for possible disagreements.
It might not prevent fights completely, but you’ll at least know what you’re getting into.
Plus, being prepared is a must for reaching your financial goals.
Here are a few questions to ask to get the conversation going.
What’s The Debt Situation?
We’ve explained how this works in a bitmore detail here.
But that doesn’t mean it won’t affect your relationship.
It could affect your budget, savings goals, and even some milestones you might share.
If you marry, will the debt remain separate, or will it become a joint responsibility?
How will individual debt affect your joint expenses or budget?
Will the debt keep you from making large purchases together?
Maybe you live together, but you’re not ready to think about starting a family yet.
What’s Your Credit Score?
Credit history is similar to debt.
It remains individualwhen you marry, your credit histories are not combined.
You should know where each other’s credit stands so you’re able to make optimal financial decisions.
Review each other’s credit score and report.
You want the person with the more favorable credit score and history to apply.
Otherwise, one partner’s poor credit could mean you get higher interest rates.
These can have a big impact on financial events down the road.
How Much Do You Make and Spend?
When things get serious, it generally means you start sharing parts of your life together.
That’s why it’s incredibly important to know your partner’s money habits when the relationship progresses.
Both of your money habits could affect these joint expenses.
If your income or money habits are very different, it helps to know this sooner rather than later.
This way, you’re able to prepare for any issues.
Sit down together and share the following:
Spending habits:Review recent purchases and expenses.
Get a feel for how you both spend.
How is your spending similar?
How does it differ?
How might those similarities and differences affect your goals and your relationship?
Income:How much do you each have coming in?
How will this affect your budget?
If you decide to get married, how will it affect your taxes?
Check out ourbeginner’s guide to taxes when you’re marriedfor more info on this.
Money “philosophies”: Learn how you bothview money.
Do you spend every chance you get?
Is your partner overly obsessed with saving?
Learning how your views differ can help you foresee any potential issues down the road.
Budgeting habits: Does your partner avoid budgeting?
Then maybe you should manage joint expenses.
Maybe you both budget, you just budget differently.
Knowing these habits can help you devise a plan that works well for each of your habits.
Like debt, you may have to budget around them.
These bullet points will also help you decide whether to keep finances separate or combine them.
For example, let’s say your habits are pretty different.
We’ve written abouthow to address this before, and it comes down to regular communication and compromise.
It’ll be easier to get on the same page later, whatever you decide.
What are Your Long-Term Savings Goals?
You also know what to expect down the road.
Retirement probably seems like a hefty topic that’s far off into the future.
Maybe they haven’t started saving, and you’ll have to work with them to play catch-up.
Maybe neither of you have started saving, and you better figure out how to start together.
Know what to expect so you could both plan accordingly.
Money isn’t a terribly romantic topic.
But it’s better to talk about finances now than fight about them later.
While slightly boring, these conversations help you prepare for your future possibilities together.
Photos by Lucas Custer,Chris Potter,Vladimir Pustovit,Nathan Gibbs, andEd Yourdon.
