TLDR
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A joint bank account can add transparency and eliminate questions for couples with shared expenses.
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You and your partner will bring your own money personalities to the relationship – it’s important to respect each other’s perspectives.
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Building joint financial goals can get you and your partner on the same page financially.
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Open and honest conversations about money can reduce conflict today and in the long-term.
No matter what stage of life you’re in, talking about money is rarely easy. Students, newcomers, couples, retirees, parents and those starting over all face different money challenges, but there’s one thing that’s common – talking about them can make all the difference. RBC’s new video series “The Drive” aims to make these real-life conversations more approachable, bringing everyday Canadians together, to share in the dialogue.
In this episode, Jesse Jones drives through Mississauga, Ontario with three passengers who chat about money in relationships – from dating to marriage and the stages in between.
If you are – or ever have been – in a long-term relationship, it may not surprise you that money is the number one thing couples fight about, and one of the leading causes of divorce. Because let’s face it, money can be a touchy and highly emotional topic at the best of times – and if you and your partner are on different pages when it comes to your finances, common ground can feel impossible to achieve.
But love and money can coexist peacefully, even when you and your partner bring different life experiences, opinions, habits and bank balances to the relationship. Here’s how you can build a positive financial future together.
1. Consider the merits of a joint bank account
Many financial experts firmly believe that married couples should have a joint bank account. Recognizing that not all relationships are the same, however, it’s difficult to ‘dictate’ this approach across the board. But there is some upside to sharing accounts worth considering.
For instance, a joint account used to cover everyday expenses can eliminate questions about who is paying for what and help you manage rising costs (i.e., rent, groceries, utilities) together. And, it can help you divide up financial responsibilities equitably. For instance, if one of you makes 60% of your total household income, that person could make 60% of the contributions to the account.
Keep in mind, many couples have a joint account and separate accounts, which they maintain for personal purchases. So, you can have your (wedding) cake and eat it too!
2. Embrace – and respect – your differences
What if one of you is a saver and the other a spender? Automatic recipe for disaster on the money front? Not so fast.
By the time you enter a long-term relationship, chances are that you have already established some economic independence, along with some savings, some debt and some distinct money habits. And chances are, they won’t align perfectly with those of your partner.
To start life together on the right financial footing, it’s best to understand where you differ in terms of your approach to money, respect where the other is coming from, and work together to find a way forward that works for the both of you. The key is to listen without judgement – neither of you is “wrong” in their approach to money. Just different.
3. Set financial goals
One of the best ways to get on the same financial page is to set goals that matter to both of you. Whether it’s saving for a trip, a car, a home or something else meaningful, having common goals can keep you focused financially and in step with your partner.
4. Talk it out
Perhaps the most important step you can take to achieve financial harmony with your partner is to communicate openly about your money ups and downs. Whether you’re dealing with debt, getting a raise or worried about your budget, having open and honest – and regular – conversations about money can keep conflicts to a minimum. While you might not always agree about money, if you make talking about it a normal, regular thing, your differences will likely get resolved faster and cause less strain on your relationship.
Read more on how to share your finances, set goals and make your money work harder for you both.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
