How To Navigate The Awkward Money Chat With Your Partner

Movies and shows tell us that the day you have found The One is when the fairytale ends... That is when you experience your happy ending. Cut to real life, that’s when the story begins. You move in together, set up the house to call it home and build a life with and for each other. However, one of the biggest aspects of this journey is managing finances. And according to Royal London, the UK’s largest mutual life, pensions and investment company, nearly two-thirds (62%) of people who admit to arguing with their partner have disagreements about money.

Hence, to help you manage your money better without having to walk on eggshells, Canada-based Nidhi Nagori, a CA and Founder of Globalogy, shares insights on making sound financial decisions and becoming the power couple you aspire to be.

Financial Topics To Cover With Your Partner Before Getting Married

Manifest: What do you think is more beneficial for couples: joint or separate bank accounts?

Niddhi Nagori: I believe it is essential for couples to discuss and decide what best suits their lifestyle and financial goals. While joint accounts can foster transparency and shared responsibility, separate accounts may provide autonomy and independence. Ultimately, the key is open communication and finding what works best for both partners.

M: How can a couple choose to divide their expenses if their earnings don’t match?

NN: When incomes differ under the same roof, couples have to approach expenses collaboratively. A solid method is to proportionally divide expenses based on each person’s income. For instance, if one partner earns 60% of the total household income, they may contribute 60% towards expenses. This ensures fairness and equitable contribution while accommodating varying financial capacities.

M: How can partners deduce best how money has impacted their upbringing?

NN: Reflecting on our upbringing can offer insights into our attitudes and behaviours towards money. By discussing our childhood experiences with finances, partners can better understand each other’s perspectives and values. For example, if one partner grew up in a frugal household, they may focus heavily on saving and budgeting. While the other partner may prioritise enjoying life’s luxuries. Understanding these varying approaches towards money can lead to more empathetic and effective financial planning as a couple.

M: How do you plan if you want to own a home at some point in time or choose to stay on rent?

NN: Whether the couple wants to own a home or rent it is a significant financial decision that requires consideration of various factors such as financial stability, lifestyle preferences and long-term goals. Couples should evaluate their financial readiness by assessing factors like savings, credit score and future earning potential. Additionally, exploring different housing options and calculating associated costs such as mortgage payments versus rental expenses can help make an informed decision aligned with their aspirations.

M: How can one plan to build wealth creation?

NN: Building wealth as a couple involves setting clear financial goals, creating a budget and investing wisely. Start by outlining short-term and long-term goals. For example, saving for retirement, purchasing a home and funding your children’s education. Next, develop a budget that allocates funds towards savings, investments and debt repayment. Consider consulting a financial advisor to develop a personalised wealth-building strategy tailored to your circumstances and aspirations.

M: Lastly, how can you initiate a conversation about debts without offending your partner?

NN: It requires sensitivity and transparency. Begin by expressing your willingness to address financial matters openly and collaboratively. Share your experiences and concerns about debt, and encourage your partner to do the same. Try approaching the discussion with empathy and understanding, focusing on finding solutions rather than assigning blame. By working together to develop a plan for managing and reducing debt, you can strengthen your financial partnership and build trust.