5 Financial Mistakes Couples Make that May Ruin Their Relationship

Most couples will agree that marriage is a lot of work. Besides love, care and respect that partners must give each other, honesty is the fourth pillar of a solid marriage. After infidelity, money is considered the second biggest reason why marriages fall apart. So what is it that couples unintentionally do that sours their relationship? Here are 5 financial mistakes couples make that may ruin their relationship:

1. Not talking about money honestly and hiding important information

money talk couples

Lies are a deal-breaker in any relationship. Small or big–what may seem harmless in the beginning can snowball into a major issue. Don’t let money ruin the blood, sweat and love you have put into a good marriage. Be honest about your finances right from the beginning.

Talk all the numbersdebt, assets and income. It’s not only lies but dishonesty that can also drive a wedge in your relationship. Even if you went against the wishes of your partner and made a wrong investment, it’s always better to come clean sooner than to be in an uncomfortable confrontation later.

2. Not having a system of dividing expenses between the couple

financial mistakes couples

Our society places more confidence in men when it comes to money. This behaviour is replicated in the way we run a household. Things are changing yet most of the times men are in charge of the finances. This does not augur well for the family’s finances. Even when the women bring as much money as the men, the expenses of the household are sometimes divided unfairly.

Dividing monthly liabilities equally between partners builds confidence. It makes running a home a joint obligation. If one partner is paying home loan instalment, the other should take care of car loan, electricity and phone bills. Just like joint ownership of assets, expenses must be shared between partners.

3. Lack of financial goals

financial mistakes couples

Most couples don’t think beyond house, retirement and children’s education. This may seem like a complete plan initially., but it is not. There is more to life than that. To begin with, even with the above-mentioned goals, the partners must be in consensus. Which house to buy? Which car is best for the family? How to finance them? These are a few of the important questions that couples must debate on.

After that, where to spend the surplus money? How and where to invest? How to budget the next vacation? Squandering money aimlessly can create a rift between the couple in the long run. Discuss all aspects of money. Keep both long term and short-term goals in mind while discussing.

4. Lack of communication about money regularly

financial mistakes couples

Without a doubt, money is the most uncomfortable topic to talk about. But when we start talking about it, it brings more clarity in a relationship. It makes all aspects transparent. Avoiding or delaying money talks leads of distrust. Doubts creep in.

So don’t shelve money-related conversations for later. Discuss your financial problems as and when they happen. And talk about finances once or twice a month. This would bring more clarity to your long-term goals bringing you closer as a couple.

5. Putting all savings and investments in one account

The biggest mistake couples do is to keep the control of savings and investment with one person. Never put all eggs in one basket is one of the crucial money lessons. Keeping money in one account is risky and outright wrong. Keep a balance to bring equality. Divide your savings and investments equally.

Though dividing it 50-50 is an ideal situation, but that seldom happens. There can be some basic rules like home in joint ownership and making each other nominee or beneficiary of savings and investment accounts is a good beginning.

Are you open with your partner when it comes to money? Is there something both of you work upon to keep money problems away? Please share your experience in the comments below.