Money Management for Young Couples

How Partners in a New Relationship Can Manage Financial Difficulties

Aug 20, 2009

New couples should discuss their attitude towards money honestly, truly know their financial situation, avoid sharing finances too soon and talk about money woes early.

Every new relationship is full of hope and love. Unfortunately, these two are not enough to sustain a relationship. True, talking about money can be uncomfortable, especially for partners in a new relationship. But if both partners are in for the long haul, they do need to communicate clearly with each other about money management.

The following suggestions may be useful for new, young couples to manage financial problems.

Couples Discuss Attitudes Towards Money Honestly

Very often, partners in a relationship do not share the same attitude towards spending, saving, budgeting and investing. And arguments revolving around financial issues can break a relationship quite easily. That’s why it’s important for a couple to discuss attitudes towards money early in the relationship than later.

Make the effort to know each other’s spending habits and financial goals before moving in together. Plan a budget and review it together regularly. Learn about each other’s salary package, job benefits, assets and insurance. Then try to compromise and agree on major financial issues.

Truly Know Each Other’s Financial Situation

Money management for couples also involves a clear understanding of each other’s financial situation. List out what each partner owns (assets) and owes (liabilities). Assets include properties, boats, savings, term deposits, shares and stocks. Liabilities include credit card bills, personal loans, car loans and investment loans. Knowing a couple’s financial situation is a good start to help them plan their future financially.

Avoid Sharing Finances too Soon

If the relationship is relatively new, it’s better to get to know each other better first before sharing joint accounts or buying properties together. Even when a couple has chosen to live together, they should buy assets separately until the relationship becomes more established. Rushing into sharing finances can cause a lot of heartache and financial trouble if the couple splits up eventually.

Manage Financial Problems by Talking About it Early

In a committed relationship, if there is a potential money disaster taking place, talking about it as soon as possible is a wise move. Don’t keep financial burdens a secret. Talk to the other half of the relationship and try to work out a realistic and achievable financial solution together.

The couple can also seek help and advice from their parents, grandparents and trusted friends. Don’t let pride stand in the way. If need be, they can also get free financial counseling services to help them. In Australia, these are available in every state. Visit the Australian Financial Counseling and Credit Reform Association (AFCCRA) website for more information.

Having good money management skills is essential to keep a relationship going. A new or young couple can deal with financial difficulties and issues by having open discussions about their attitudes towards money, really know each other’s financial situations, avoid sharing finances too soon and talk about any money problems early.

Koch, David. Kochie’s 101 Ways to Survive 2009. Melbourne: Wilkinson Publishing, 2009

The copyright of the article Money Management for Young Couples in Family Finances is owned by Wei Yin Wong. Permission to republish Money Management for Young Couples in print or online must be granted by the author in writing.