Money conversations can be awkward and uncomfortable between couples. While this may be true in some cases, some couples have learned how to handle their finances better by avoiding common money mistakes.
Making money mistakes can be quite expensive and may slow down your journey to financial freedom. When two people with different money orientations come together, there are chances that they may make money mistakes.
Learning about common mistakes couples make and how to handle their finances can be helpful.
Here are five common money mistakes that couples make with money and how to avoid them.
1. Not Discussing Money
A lot of couples do not discuss money. It is off the table for them. “You have your money”, “I have my money”, and everybody minds their money business.
If you do not discuss money, how will you know if the other person has a little less and needs support? How will you know what the other person is doing with your money?
Not having money conversations with your partner may hinder you from enjoying the benefits designed for couples in various systems concerning money.
It also means you do not get to know if your partner is making financial mistakes. Likewise, if you are making financial mistakes, your partner will not be able to advise you.
2. Leaving Financial Decisions To One Person
A recent study showed that only 40% of couples in the UK have joint responsibility for their money; and in most cases, the one person left to make financial decisions is the man. The woman just looks away and allows the man to make all the financial decisions.
He decides on what they invest in, how they save and budget, and what insurances to make. When you leave financial decisions to just one person, you benefit from the intelligence and decision-making abilities of only that person.
Two heads, they say, are better than one. Get involved in every little financial decision that impacts you as a couple.
What life insurance you both have, where your money is to be invested, whether you are investing for the children, how much you are saving, and if you are taking more debt or paying off the old debts should be your combined decisions.
When you leave your financial decisions to your partner, you are essentially leaving your future to your partner to decide.
You are indirectly saying “decide what happens to me in the future, take out debts in our name, do whatever you like in our name, I do not care”.
You should care! Leaving decisions to your partner also means allowing your partner to carry all the financial burden, which is not fair.
3. Income Shaming
When you begin to shame your partner because they earn less, you are simply eroding their confidence and their abilities to go out there and make more money.
If your partner makes more money, it is to your advantage, so why would you income-shame them?
There is so much to how bad this behavior is. If you have been income-shaming your partner, it is time to stop. When you do that, you are insinuating that they are not as good as you are.
Taking away your partner’s rights to be involved in financial decisions making is manipulative.
If you are the one who is being income shamed, have that conversation with your partner and let them know that you are not comfortable with it.
4. Clinging To Childhood Financial Baggage
Some people grew up with affluence and are now clinging to the fact they must maintain that legacy despite their low economic status.
Even though they do not have children, they still believe that they have to buy a 6-bedroom because they grew up in one.
The fact that your Father had a driver and so many domestic staff does not mean you must live the life they lived.
Let go of your childhood financial baggage before it ruins your relationship with your spouse. Create your financial future, leave the past and live by the rules you have set for yourself.
Set rules that make your partner happy and give you peace of mind.
5. Keeping Money Secrets
This point is a delicate one. Many women do not like to tell their partners what they do with their money. Keeping money secrets is a money mistake that you must avoid by all means.
Some people keep money secrets because they do not want their partner to know how much they spend on a particular item.
Keeping these secrets may have you doing that you should not. One of the roles your partner plays for you financially is to be a check and balance for you; else, you end up spending a lot more on vices and things you should not spend on.
Even the financially savviest couples need help every now and then. Do not wait until the last minute before seeking help. If you need some guidance with navigating your finances and investing your money, you can book a 1 to 1 session with me, and I will be glad to talk to you.
Till next time,