Questions to help define the relationship with money in your relationship

Submitted by BECU.

When it comes to any relationship, aligning on money matters is important as it plays a pivotal role in every aspect of a couple’s life. Although talking about finances may not be the most fun conversation to have, there’s no doubt it’s an important one that can have long-term impact. To make defining your relationship with money easier as a couple, BECU Lead Financial Educator Stacey Black has outlined five questions to kickstart the conversation.

• What are your financial goals? Black recommends that you don’t dive into a “money talk” that’s all about spreadsheets, budgets and paying your bills – that’s a recipe to stress both of you out. Instead, start with a broader conversation about your financial goals – do you want to buy a house? What type of lifestyle do you want to live? Then, create realistic goals you can both actually live by and make sure you’re on the same page when it comes to short- and long-term financial goals.
• How should you split up bills? If you and your partner are moving in together, it’s important to discuss how bills will be divided. Will they be split 50/50? Will the person earning a larger income contribute more? Asking these types of questions prior to cohabitating will lessen confusion in the long run.
• Do you want to combine finances? There are many ways to do this, such as pooling your income into one account, keeping them strictly separate or some combination of the two.
• What is your credit score? Do you or your significant other have bad credit? A poor credit history could drastically hinder your ability to plan ahead and achieve your goals, so conducting this type of “financial background check” ahead of time is crucial.
• Should you get your kid a credit card? Parents want to get credit cards for their children for different reasons. Maybe they want to jumpstart their credit, or maybe they want to teach them about budgeting, saving and spending. Having a clear idea about why you want your child to have a credit card can help you make the best choices for your family.