Tips for Couples Combining Finances

August 9, 2023

Combining finances with your partner is an exciting step in your relationship but can also be a cause of significant stress. Although it is not very romantic, money plays a major role in any relationship and creates the opportunity to strengthen your bond and work together to reach your life goals. With open communication, transparency, research, and advice from an expert, combining finances can be a seamless process for couples.

Here are some practical tips to help couples integrate their financial lives.

1. Discuss expectations - Open dialogue and communication are the backbone of many aspects of relationships, but particularly pertaining to finances. It is important to understand each other’s spending habits, financial responsibilities, and non-negotiables from the start. Start the conversation early, discussing your money values, long-term financial goals, and how you envision your future. The conversations can be uncomfortable at first but can help set a foundation for a future of financial wellbeing¹ and freedom. Consider asking each other questions like:

1. Do you tend to save or splurge?
2. How much money do you spend on non-essential items?
3. How much of your paycheck are you setting aside for emergencies and retirement?
4. What amount of money do you consider a financial decision that should be made together?

2. Understand your options - Couples can choose from a variety of account options when combining their finances, and each one has unique advantages. Evaluate all of your options and choose the best one for you based on your lifestyle, income levels, and financial habits.

1. Some couples may prefer to keep separate accounts which allows for personal spending without impacting the shared finances.
2. Others choose to open a joint account which gives both partners equal access to the funds and is a great option for managing shared expenses like a mortgage payment or groceries.
3. A hybrid approach is another option that allows couples to keep their separate accounts, while also contributing to a joint account.

3. Set goals together - Having goals that you want to reach can make the process of combining finances exciting! Imagine your dream home, condo on the beach, or other big purchase you hope to one day make as a couple to motivate you to reach financial milestones. Identify both shared and individual goals like creating an emergency fund, saving for retirement, a vacation fund or anything else you want to achieve. Writing down these goals and discussing them together can make couples closer and foster a shared sense of accomplishment when you achieve them.

4. Gather your team - Having trusted professionals on your team that can answer questions that may pop up along the way can help create a seamless financial journey for you as a couple. Be sure to find a financial advisor that both of you are comfortable reaching out to, and work closely with members of your bank or credit union to choose the right options for your situation.

Combining finances as a couple is a major steppingstone that requires open dialogue, mutual respect, and careful planning. Every couple is different, and there is no one-size-fits-all approach, so it is important to analyze all of your options before making any decisions. When you find a method that works for both of you, you can work as a team towards financial freedom and embark on a journey to reach your financial goals.

This information is for informational purposes only, is intended to provide general guidance, and does not constitute legal, tax, or financial advice. Each person’s circumstances are different and may not apply to the specific information provided. You should seek the advice of a financial professional, tax consultant, and/or legal counsel to discuss your specific needs before making any financial or other commitments regarding the matters related to your condition.

¹ Retrieved from: https://open.spotify.com/episode/0mBJUY6iHrUup2lCFlNS7c