Couples and money worries

 

SheDream.com

Relationships
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 


Research looking at sources of conflict within couples has consistently found that financial problems are one of the most cited reasons behind arguments and even splitting up. However, research has also highlighted that the problem is not the level of income per se. Rather, arguments seem to generate about how the money is spent and administered.
 

In order to minimize friction and arguments, it is important for individuals in the couple to understand what is their own relationship with money and what this represents for each one of them. Attitudes towards money can be summarized in four main categories: 

1)      Money is for the here and now – In this category are individuals who want to enjoy the present without thinking of possible consequences of the future. They want a holiday ‘now’, they want a car ‘now’, they want to go out and party ‘now’ and not think about what tomorrow may bring.

2)      Money is for today AND tomorrow – These individuals take into consideration both the needs of today and the possible needs of tomorrow (including the rainy days!). Although they spend part of the money to enjoy the present, they don’t go to the extremes and save some money to take care of the future.

3)      Money is for accumulating – These individuals tend to keep most of the money for themselves without spending it. The risk is to miss out on some joys of life (e.g. going out for a meal to a nice restaurant etc.) and alienating a partner who does not share a similar view on money.

4)      Money is for sharing –  In this category are individuals who tend to be the very generous with their money and share their wealth with loved ones, buy presents, give money to charities and so forth.  

Of course the main question that stems out this is: what do you do if you and your partner have different attitudes towards money? 

Well, if that is the case then you will need to sit down and agree on some basic budget priorities. These priorities could be: 

1.      money for bills, food and basic essential things

2.      money put aside for possible emergencies

3.      money for leisure and entertainment and

4.      money put aside for saving  

You could open a separate account to ensure that at least point number 1 is covered and every month you put, say, £800 on this account via direct debit (or whatever you have worked out your bills and basic essentials to be). Then you can negotiate the rest. 

However, it is important that each of you write down your own list of priorities (and maybe divide these priorities into categories such as absolute musts e.g. mortgage, important e.g. children’s clothes, treats e.g. cinema and so on). Then you will need to ‘compare notes’ (so to speak!) and calmly go through each other’s list and negotiate how to distribute the money. If after going through this procedure you still have problems, then you may want to consider speaking with a third impartial person.