8 Essential Money Conversations You Should Have With Your Partner
Is your relationship starting to get serious? Or is it still a budding relationship? Financial security is an important factor in figuring out if you see a future with this person.
By starting to have financial conversations with your partner, you get to understand them on a deeper level and whether their financial goals match with yours. Even if they don’t match up, you can still build towards that.
Below is are a few questions you should ask your partner to help you identify how to build a stronger financial future with them.
What are your financial goals?
Do you want achieve wealth? How much do you expect to save before you retire? If you want kids, how much are you trying to save to cover college expenses? Once you understand what your financial goals are, see if your goals match your partner’s goals.
How much debt are they in?
College debt, credit card debt, it all adds up. A relationship is a partnership. By asking how much debt they have, you both know how much to you need to pay down when you start a budget plan.
Do they have any financial obligations?
You or your partner may be paying alimony and/or child support. Your partner could also have the tendency to lend money to family and friends money which could lead to low or very delayed return. These financial obligations can decrease the amount of excess cash your partner has available for savings. However, with a budget plan, you can still manage to save some money. This is also great opportunity to disclose this aspect of your past to your partner, if you haven’t done so already.
Do they have a budget system?
Someone who freely spends their money without a budget, most likely aren’t thinking of the long term goal of financial security and building wealth. However, you can work on this together by building a budget plan to help you achieve your financial goals.
What is their income?
This can be a little awkward at first, but it’s a super important question. It helps you understand your total income as a couple which can be useful information for your budget plan. However, you may want to wait until you’re a little further along in your relationship before you ask this question. Even though your aim is to be financially responsible, you want to make sure your partner is comfortable that you are in the relationship for the right reasons.
Who is paying the bills?
Thinking about co-habitating or marrying your partner? Does this require separate accounts or a joint account? Sharing the cost of bills gives you more financial flexibility to increase your savings plan. One person doesn’t have to pay all the bills. Alternate who pays certain bills so that one of you don’t lose touch of how to pay off bills.
MoCaFi Tip: With the MoCaFi App you can each have your individual accounts and transfer money to your joint bank account at an external financial institution. This way, you can still maintain independence while comfortably easing your way into sharing financial habits.
What are your career plans?
How far in your career do you want to advance and do you know the estimated salary range for that position? Do you plan to further your education before you advance in your job? Be honest, even if you feel like you are dreaming big. You got this and a partner should support you in your goals. Your partner may want to advance in their career as well which can increase your total income as a couple.
What’s your rainy day plan?
Whether it’s the loss of a job or the an unexpected medical issue, sometimes, emergencies come up and you don’t have the same financial security you did before. How would you and your partner handle this? What is your backup plan? A great way to reduce the stress and financial insecurity of emergencies is to set up a savings strategy. Once you figure out what your goal amount is for your savings plan, you can work on a budget together to help you achieve that goal.
MoCaFi Tip: MoCaFi has a Rainy Day Fund so that you can start saving and putting money away.