Having the same favorite TV shows or sharing a mutual love of tennis with a romantic partner is great and all. But being on the same page when it comes to values and behaviors around money can also be a crucial part of maintaining a healthy, lasting relationship.
According to a 2017 Experian Credit and Divorce survey of 500 adults who had divorced in the past five years — the latest data available — 59% of divorcees said finances played a role in their divorce, and 53% said they were not financially compatible with their spouse.
Achieving financial compatibility takes communication and understanding. Here’s how to know whether you’re in a financially compatible relationship and what you can do to make it stronger.
What does financial compatibility mean?
Being financially compatible doesn’t mean that you and your partner earn the same amount of money or that you have to share all of the same financial behaviors. It’s OK to have your own money styles, opinions and roles.
“Financial compatibility is really about do you both feel comfortable with the other person and how they are handling their money, dealing with their money and how you’re doing so as a couple?” says Aja Evans, a licensed mental health counselor and financial therapist in New York City. She adds that it also means understanding each other’s beliefs around money and how you use it, openly communicating and supporting your partner’s goals — whether they’re individual goals or ones you have as a couple.
You should be willing to discuss what money was like during your respective upbringings, plus your current financial situation, habits and ambitions, experts say. That could include disclosing how much you make, if you haven’t already, as well as how much debt you have and your credit scores.
Ask each other questions like, “Were there times when your parents didn’t have enough money to pay the bills?” or “What are your thoughts about what retirement would look like…
Read the full article here
