Did you know that financial problems are one of the leading causes for divorce in marriages? In fact, some psychologists say that many people will talk about anything before they talk about their finances. Talking about money, and being on the same page, is so important to having a long lasting, happy relationship. If you’re getting married and trying to figure out your finances, or if you’re looking to improve your financial talks with your partner, take a look at these options with their pros and cons to start the conversation.
Option 1: Combine Your Finances
Many people choose to combine their finances like they’re combining their lives in marriage. When you merge your finances, it’s easier to manage budgets and be aware of the total financial situation that the family is in. In order for this to work, both couples have to be on the same page with spending and saving. If one person is more of a saver while the other person spends a lot – this could become a point of tension.
Option 2: Keep Finances Separate
Just because you’re married doesn’t mean that you need to combine your finances. If you’re both able to support yourself – splitting costs either 50/50 or based on a percentage of your income isn’t a bad option for people who want to remain mostly financially independent. This is a great option for being able to manage your money as you see fit.  However, there are some challenges too. It could make paying bills a little trickier and may  require frequent talks about where the other person stands, especially when it comes to financing bigger purchases. It may also be more difficult to get access to your spouse’s funds if something happened to them.
Option 3: Do a Little Bit of Both
In this option, you may choose to have a joint account for expenses that you both have – like mortgage payments, groceries, utility bills, vacations, etc. but then have your own separate accounts for “fun money”. This may make sense if you want to continue to have some financial independence. The downside is it can be more confusing to manage and you’ll have to figure out how much each person should contribute based on their salary to the joint account, in order for it to be fair to both parties.
Each option will have its own pros and cons that you should review with your partner in order to figure out what’s best for you. When it comes to any type of conversation about money with your partner, it’s important to be honest and nonjudgmental about their current financial scenario. Going into the talk with the goal of figuring out a solution together instead of being too defensive or aggressive is key to making this conversation civil and not stressful.
If you’re looking on getting new accounts or transferring accounts so you can manage your finances better with your partner, Sikorsky Credit Union has many great options. Free checking with rewards, high interest savings accounts, and other options are available to you. As long as you live, work, worship, or volunteer in Fairfield, New Haven, or Hartford County in Connecticut, you can bank with us.