Metis AM
For many people, talking about money with their loved ones is still, regrettably, a taboo. Often, no matter how open you are with your partner, it can still be uncomfortable to discuss the topic of finances.
As you might imagine, this can sometimes lead to misunderstandings. According to a recent report by Royal London, money is the most common cause of arguments between partners, with more than three-fifths of couples having had a disagreement on the topic.
Not only is trust a key cornerstone of any healthy and successful relationship, but having both partners be able to make informed decisions can help you stick to your financial plan. Read on to find out five useful tips for talking about this difficult topic.
1. Be honest and open
When it comes to discussing financial matters, one of the most important tips is that you should approach the conversation with honesty and openness.
While keeping secrets from your partner is rarely wise at the best of times, this is especially true when it comes to finances. Despite this, the Royal London report notes that one-third of Brits have hidden wealth or debts that their loved ones don’t know about.
It’s important to bear in mind that you may have a very different approach to money than your partner does. For example, you may prioritise saving for the future, while your other half is a more impulsive spender.
Being honest about your finances and personal circumstances, such as debts, will encourage your partner to do the same. This can help you two to approach this topic with confidence.
2. Set a specific time for a discussion
Conversations about money have the potential to get heated quickly, which is why treating them like formal meetings can sometimes help. By approaching your finances in a purely practical way and talking to each other like adults can help to avoid the risk of any misunderstandings.
For example, you may want to consider setting a specific time each week or month to talk about money, in which you can freely discuss finances and how you feel about them. This can help to prevent arguments before they happen by encouraging an open discussion.
Of course, it’s important to bear in mind that this approach may not be right for everyone. If this is the case, you may benefit from working more closely with your financial planner, as they can act as an impartial third party.
3. Remember that you’re a team
Another useful tip for discussing your finances is to remember that, no matter what, you’re in this together. While you may have your own way of doing things, your partner probably does too, and this is why it’s important to find a compromise.
As long as you are able to reach your long-term goals, there are no right or wrong ways to make a financial plan. For example, some couples prefer to have joint bank accounts and pool their income while others prefer to keep their wealth separate.
You need to find an arrangement that works for both of you, so you can build your wealth effectively together.
4. Be sensitive to your partner’s feelings about money
When talking about finances, you should always bear in mind that everybody has different relationships with money. While you may be comfortable discussing it, your partner may not, which is why it’s important to treat the topic with a degree of sensitivity.
Very often, people’s attitudes to money are shaped by their past experiences. For example, if the topic caused arguments in your partner’s home when they were young, they may be hesitant to bring it up.
If your other half is reluctant to discuss finances, it’s important to be sensitive to this, as it may not be due to apathy. Only by delicately broaching the topic can you move forward together to reach your long-term goals.
5. Look at the bigger picture
Very often, conversations about money can revolve around small issues, such as day-to-day spending. However, it can often be more useful to focus on the “bigger picture” of your long-term plans instead.
If you want to be able to meet your long-term goals, working together can have many valuable advantages.
For example, it can help you to make the most of your tax allowances, allowing you to build your wealth much more effectively. Alternatively, when the time comes for you to retire, it can help you to draw your pension in a tax-efficient way.
Get in touch
If you want to be able to grow your wealth with your partner in the most effective way, we can help. Please email enquiries@metiswealth.co.uk or call 0345 450 5670.
Please note
A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.
This article is for information only. Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
