The Importance of Financial Communication

Studies have shown that money is one of the most frequents points of contention between married couples. But most of us do not need a scientific study to tell us that. Whether you are pinching every penny for all it is worth or have more money than you know what to do with, sharing finances with someone else is bound to cause some disagreements.

Even the most compatible couples often have different ideas of how money should be handled. But that does not mean they should call it quits if they canít see eye to eye on financial issues. In many cases, it just means that they need to work on communication and compromise.

In many (if not most) couples, one is appointed as the financial manager of the household. This may happen after much discussion, or it may just happen without a conscious decision being made. The person managing the finances usually pays the bills, makes banking decisions and manages debts as he or she sees fit. This is not necessarily a bad thing in itself, but it tends to separate the other partner from the financial picture. And when he or she does get a glimpse of it, if it is not as good as imagined, it can cause problems.

Thatís why it is so important for both partners to have a hand in the finances. If one does not want to pay bills and such, that is fine, but he should be kept in the loop about everything. If necessary, consider having a weekly meeting in which you discuss the state of your finances. This will eliminate unpleasant surprises and the arguments they may cause.

Keep Track of Spending

A frequent source of friction in a marriage or domestic partnership is spending. One partner might strive to be as frugal as possible so that more money can be saved or used to reduce debt, while the other feels that buying something she wants every now and then is fine. Instead of trying to work out a compromise, they might hide money or spending to avoid confrontation.

But when such lies are discovered, they are bound to cause serious problems. That is why it is crucial to be completely honest about not only your own spending, but your expectations for your partner's spending. You may not see eye to eye, but being completely honest is the only way to truly know the state of your finances. It enables you to make a budget as well, and this can be a helpful tool in working out such differences.

When it comes to finances in a relationship, clear, honest communication is a must. Sharing your goals and ideas on how to achieve them will help you approach money matters as a team rather than fighting over them. Even if you have very different views on financial matters, itís almost always possible to find a middle ground that both of you can live with.