Understanding Financial Personalities

Everyone has different financial habits — some may be natural savers, while others are spenders.  Having open conversations about spending and saving preferences can help you find a middle ground that works for both of you. For instance, setting shared financial goals and agreeing on non-essential spending limits can accommodate both partners', while adding comfort and confidence in their spending tendencies.

Budgeting and Defining Roles

Creating a joint budget is a fundamental step in managing shared finances. This involves listing all sources of income, tracking expenses, and determining savings targets together. It’s a good idea to check in with each other to ensure your priorities remain the same. Use of budgeting tools or apps makes it easier to stay organized and keep finances transparent and the process collaborative.

Determining who manages various financial responsibilities depends on each partner's strengths and interests. Some couples prefer one person takes the lead in budgeting and bill payments, especially if they have more interest in doing so or are more financially savvy. Others prefer to share the responsibility equally, but the most important thing is that both partners stay informed and are involved in significant financial decisions.

Combining Finances: To Merge or Not to Merge?

The decision to combine finances is personal and varies among couples. Comfort levels and financial habits play a big role.  Some couples opt for a hybrid approach, maintaining both joint and individual accounts to balance shared responsibilities with personal autonomy.

Planning for Major Life Events

Whether you are saving for a wedding, purchasing a home, vacations, or planning for kids, it’s important to have a game plan.  One tip would be to set up dedicated savings accounts for each goal, so you can track progress and avoid commingling funds meant for different purposes. Consider high-yield savings accounts, like Affinity’s Smart Start ², where you can earn 3.5% on the first $10,000 deposited and 0.75% on each dollar you add thereafter. You can make your life easier by automating contributions to these accounts, ensuring consistent saving and reducing the temptation to divert funds elsewhere.

For couples planning to have children, anticipating childcare costs is vital. Researching local childcare options and their associated costs well ahead of time can provide a realistic expectation of expenses. Setting up a dedicated savings fund can help ease the future financial strain.  You can also look into employer benefits, such as a flexible spending account, which could save families several thousand dollars in childcare expenses each year. And don’t forget to explore tax credits, which can offer added financial relief.

Managing finances as a couple requires open communication, mutual respect, and strategic planning. By understanding each other's financial perspectives and working together, you can tackle challenges and grow stronger as a partnership and team.  If you need more guidance, feel free to visit a local Affinity branch to broach these topics with one of our Certified Wellbeing Coaches ³.

¹ Retrieved from: https://talkerresearch.com/couples-argue-this-many-times-a-year-about-money

² Retrieved from: https://www.affinityfcu.com/personal-banking/banking/savings/smartstart-savings

³ Retrieved from: https://www.affinityfcu.com/financial-wellbeing/certified-wellbeing-coaches