The following is a guest post from Natalie of Everything Finance. Let me know if you would like to guest post on Savvy Scot.
I have been fortunate enough to have been with the same person for over six years now. It has certainly been a journey and there have definitely been bumps on the road. Like most couples, we have argued over money and where it should be spent in the beginning. We could have saved ourselves a ton of trouble if we were more open when it was needed. Discussing money with your partner is absolutely necessary in order to have a healthy relationship. It can literally save you thousands (and a major headache) down the line.
It is hard to say when is the best time to have the discussion with your partner. Every couple is different and must decide that for themselves when the relationship is at a point that is serious. When you decide it is the right time, the best thing to do is to sit down when you will not be interrupted and talk about spending habits. Discussing your financial present is the first step towards establishing a good financial relationship. Get all your paperwork and bills together to decide what financial obligations each of you has. Do either of you have student loans? How about car notes? Constructing a budget that both of you can follow is the first step.
One of the other important things when discussing finances is the past history of both parties. That being said, it is important that both people come clean if there is something that happened in the financial past that can affect the other partner’s future. An example of this would be if one person declared bankruptcy in recent years. This can possibly affect the other person’s life if both parties were to get married. This part might be especially difficult for some people but remember that everyone makes mistakes. The crucial thing is bringing about the effective action to overcome any mistake made in the past.
Being able to discuss future priorities is probably the most vital thing of all. You may not know everything about the past, but you must know where the person is going financially. Does the person share your economic values? What about home ownership? Are you both interested in having children? Questions like these will affect how money will be spent in the future and will show the other person in the relationship what the other person wants. If you can have a good idea of what the other person wants in the future, then you can figure out a plan to reach those goals. Relationships run so much smoother when both people have a clearer understanding of what the other wants.
Sometimes discussing money can be the hardest thing in the world for some people. It makes many people uncomfortable even though it must be done. The possible consequences of not speaking about your finances can result in major problems down the road. Miscommunication can really put the nail in the coffin to any good partnership. Taking the steps to discuss money and similar priorities can really help ease these types of arguments, because we all have them. Sitting down and talking about these things is what is going to help your relationship last and be that much more open for years to come.
This is a guest post by Natalie over at Everything Finance. Everything Finance is a site about just that, everything related to finance. You can get information about investing, saving money, insurance, shopping, blogging, and making money online.
I’ve been with my partner for almost 7 years. We discuss finances quite often, especially now that we have a house together and are getting married. We are going to partially combine our finances, so any time there is a large purchase to be made, it is discussed between the two of us.