When You Should Have The Financial Talk When Dating

August 22, 2018

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The number one reason couples file for divorce is centered on money.  Yet the average couple waits too long to talk about money with each other. A new survey find that couples wait on average eight months to disclose their full financial situation. Divorced couples said they waited 11 months to fess up about their finances to their previous partners. And while 72% of surveyed couples claimed they communicated “exceptionally or very well,” more than four in 10 of them (43%) didn’t even know how much their partner earned in a year, and 10% were off in guessing their other half’s salary by $25,000 or more. Money impacts relationships every single day and it's not necessarily big money decisions, but small, everyday money decisions. The problem is figuring out how to start having the financial talk in the first place. While it isn't necessarily a good idea to have it on the first date, signs on how your love interest handles their income should tip you off as to their habits and that's the perfect time to bring it up in conversation. So plan a date early in the relationship to discuss what you and they spend money on for fun.  You can ask questions like, “I’m trying to save money by cooking at home more. How often do you go out? Where do you budget?” just to see how your habits stack up. The time to have a sit down and detailed discussion about money is when you are planning to move in together and/or when you get engaged to be married. Since your finances generally will become more entwined at this point, it's important for you to know each other’s debts, savings and income.  If they are secretive or do not wish to disclose their financial situation, it is a sure sign that money will be a major issue in your relationship. Your financial goals should be discussed then as well. Again, if they are not compatible, it is a sign your relationship is doomed. Discussing your financial situation should be a positive and honest discussion to ensure your life together isn't marred by differences in spending habits.

SOURCE:  Moneyish

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