Couples argue about money. A lot.Seven out of 10 couples who are married or living together report fighting about finances at least once a year, according to the American Institute of Certified Public Accountants. Three out of four say financial decisions cause tension in their relationships.I’m all for dividing and conquering chores in a relationship, but when it comes to money, everyone in the coupledom needs some baseline knowledge and participation. For one partner to know and control everything is a solo burden — while you’re still in love — and a potential risk to one of you, should you break up.Good financial habits, including organization and transparency, are acts of love. This isn’t about mistrust. It’s about making sure both people understand their shared financial lives and could step in or step up if something suddenly changed because of illness, death, job loss or divorce.As an experienced senior wealth adviser at Carnegie Private Wealth, I’m suggesting some financial habits every couple should share. About Adviser IntelThe author of this article is a participant in Kiplinger’s Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.No. 1: Read before you signBoth partners should review major financial documents, including tax returns, investment and retirement account paperwork, insurance policies and estate planning documents. Never sign something you haven’t discussed and reviewed together.No. 2: Have regular money meetingsDon’t wait for a financial crisis to talk about money. Check in monthly or quarterly about cash flow, upcoming expenses, savings, investments, debt, goals and anything that’s causing financial stress.No. 3: Know where everything is — and how to access itBoth partners should know where accounts are held, how passwords are managed, where important documents are stored and how to reach the family’s financial professional, accountant and attorney. Consider creating a financial master document with account information, insurance policies, estate documents, key contacts, recurring bills and access instructions.No. 4: Know your household numbersEven if one person manages the day-to-day finances, both partners should have a general understanding of income, spending, housing costs, debt, emergency savings, retirement savings and net worth.No. 5: Show up for important financial meetingsWhenever possible, both partners should participate in meetings with financial advisers, CPAs, estate attorneys and insurance professionals. That keeps one person from becoming the sole holder of important relationships and information.No. 6: Be honest about spending and debtFinancial transparency doesn’t mean asking permission every time you buy a cup of coffee or fancy pair of shoes. But hidden accounts, debt or financial problems can seriously damage a relationship. Couples might want to agree on when a financial decision warrants a conversation — a large purchase, new credit card, loan or significant gift to a family member, for example.No. 7: Review beneficiaries and estate plans togetherCheck beneficiaries, powers of attorney, healthcare directives, guardianship plans, trusts and wills regularly. Life changes, and documents and beneficiary designations need to keep up.Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel, our free, twice-weekly newsletter.No. 8: Learn together — without judgmentThere should be no “you wouldn’t understand” when it comes to money. One person might love investing or spreadsheets more than the other, and that’s fine. Both partners still deserve knowledge, visibility and the confidence to ask questions.No. 9: Consider a prenup — or a postnupPrenup or postnup agreements aren’t simply preparations for divorce. They force couples to talk openly about assets, debt, inheritances, business ownership and expectations. Even couples who ultimately decide against an agreement can benefit from having the conversations involved in considering one.No. 10: Trade places occasionallyDivision of labor is fine, necessary even. Total dependence isn’t.Here’s one more financial habit to try: Every once in a while, trade places. If one person usually pays the bills, let the other do it. Review statements together. Make sure both of you know how to transfer money, access online banking and handle the other financial tasks that keep your household running.Think of it like a road trip: One person might do most of the driving, but both should know how to operate the car.You don’t have to split every financial chore 50/50. You just want to know that if one of you suddenly couldn’t do your usual job, the other could take the wheel.Related ContentThe Financial Details Every Couple Should Share (Before There’s an Emergency)I’m a Financial Planner and an Only Child: Here’s How to Navigate Your Parents’ Older Years Solo (and Why I’d Recommend a Postnup)Before You Sign Divorce Papers, Consider These 6 Tips From a Financial Adviser Who’s Also a Certified Divorce Financial AnalystThe Most Precious Gift You Can Leave Your Family Is an Organized Financial LifeI’m a Financial Adviser, Wife And Mom: 6 Money Lessons I Teach My Kids and My ClientsSecurities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA & SIPC.Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. Asset allocation does not ensure a profit or protect against a loss. This article is intended to assist in educating you about insurance generally and not to provide personal service. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information.This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
10 Financial Habits Every Couple Should Share
