Here are 5 practical steps every couple (married or engaged) can take to protect and strengthen their relationship, while implementing sound financial habits.
1. Straight money talk
Money has been a taboo subject among couples for way too long. It's time to break the silence and start talking. Set aside one night a month for your "money talk." Do it over coffee and dessert, or after your children go to bed so there are no interruptions. Be honest with each other and listen. Use that time to discuss problem areas and possible solutions. Don't waste it on playing the blame game.
2. Wisdom in the multitude of counselors
Admitting financial problems is never easy. However, finding a trusted and objective source of counsel is often critical for couples who simply can't figure it out on their own. Do you know a couple that's making the right financial decisions? Befriend them. Ask them questions. Learn from their experience. If they can do it, so can you! If you are further along on your financial journey, look for a sound financial advisor who shares your values and will be able to guide you as you look ahead to retirement, saving for kids' college education, investing, etc.
3. Spender or Saver — which one are you?
Learning each other's money personalities is key to helping you succeed financially. Most likely one of you is a spender while the other one has a tendency to save. Forget the traditional roles regarding who should handle money at home. Let the one who is a saver manage your home finances. Build a budget together, agree on how much you'll spend on each budget category, and let the saver keep you accountable for sticking to the plan! Think of creative ways to reward the spender for sticking to his or her allowance each month. It'll keep them motivated to keep it up.
4. Make budgeting fun with technology!
Budgeting does not have to mean boring and complicated Excel spreadsheets. Today, technology offers many great budgeting solutions to help you and your spouse not only track every single penny but also plan on how you'll spend it. Once you've find a solution that fits your needs, both you and your spouse will be able to have much more fun in the process.
5. Break the yoke of debt — start saving
If you are in debt, the one sure way to break that cycle is to start saving. Too many couples use their debt as an excuse not to save. Make a list of small, doable goals. Start with saving $1,000 as an emergency fund and then keep going. Your goals should include having 3 to 6 months of living expenses set aside. If you have a hard time leaving that saved money alone, talk to your bank about putting restrictions on your savings account not to allow withdrawals. According to the FPA poll, only one in five couples make investment decisions together. Work hard on breaking that trend. Plan together, set goals together and celebrate every accomplished milestone together.
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