Talking about money can sometimes lead to an uncomfortable conversation in a relationship. However, learning the right way to talk about money with your significant other is key to your financial success together. Sharing your financial goals and being honest about your financial habits is important. Here are some helpful tips to get the conversation started.
Dedicate a time
Together, choose a time when both of you can focus without distractions. If it helps, turn all smart devices off while you meet to make sure you have each other’s full attention.
Prepare your thoughts
Prepare a mental list of topics you’d like to discuss. Include the basics like budgeting, spending and financial goals along with any specific issues you’d like to see change.
Start with a vision
Here are some ideas to get you thinking about your financial future.
- Wouldn’t it be amazing to buy a home of our own?
- I’d love to retire at 65. How could we make that happen?
- I would like to have a new car. Can we afford the monthly payment?
- I’ve always dreamed of going on a cruise. When could we do that?
Discussing your goals for the future can help you develop a plan to achieve them. If one of your dreams is to buy your first home, but your credit score is holding you back from getting an affordable interest rate, establish a plan to improve your credit score. Make sure you’re paying all your bills on time and work out a plan to pay off some of your debts.
Build a budget
Once you have your financial goals set, work out a monthly budget that accounts for all expenses and your new savings goals. Use our free online personal financial management tool, My Financial Partner to create realistic budgets, track your spending and set financial goals.
Create a savings plan
Start talking numbers. How much would you need to make a financial dream come true? Together, create a savings plan that will help you achieve your shared goals. You might also have to find areas to cut your current spending to be able to save what you need. Maybe you cut out your morning coffee stop or eat out less to start.
Discuss money management
If you aren’t already sharing expenses, talk about it now. Also, consider opening a shared checking account at your credit union to make managing your money easier.
Once you’ve made it through the money talk, go out and make those dreams happen!