4 Financial Conversations to Have With Your Partner

4 Financial Conversations to Have With Your Partner

When building a life together with someone, it’s important to be comfortable discussing finances – from the little things like “I’ve got the pizza this time” to the bigger topics like “Do you have any retirement savings?” Being able to openly discuss salary, credit score and budgeting and more is a key step to getting on the same page with your financial goals.

If you’re worried about how to even begin a conversation about finances with your partner, we’ve got you covered. To help you prepare, here are four topics to cover and questions to consider to make it a productive discussion.
 

1. Moving in and living together

Moving in with a partner is a big step to take and requires financial planning. Before you pack those moving boxes, have an open conversation to ensure you’re on the same page and level of financial commitment. Here are some helpful questions to help get the conversation started:
 

• Do you want to rent or buy? Does one of you already own a house and the other would be moving in and splitting the payment?
• If moving into a new place together, what is an affordable price range for both of your budgets?
• What’s your total debt? Include any loans you took out or that are in repayment, along with any outstanding credit card debt.
• How many credit cards do you have? Do you pay your monthly bills on time?
• What’s your credit score? Credit scores are affected by things like debt and payment history, so it can be a good indicator of how you’ve managed your money and financial obligations. Credit scores are taken into account for determining eligibility for things like mortgages, so it’s beneficial to know where you both stand before trying to get a place together.
• How will all expenses (i.e. electricity, groceries, water) be divided?
• What additional services are important to you (i.e. cable vs. streaming)?

Take the time to also go over what your current monthly living expenses look like and come up with a list of bills you’ll be bringing with you so you can budget accordingly. If you have a system in place for how you usually pay bills, share it with your partner so you can best figure out how to pay them together going forward. You might even consider opening a joint bank account for the purpose of easily paying all bills from one account, or for saving to buy a house.

If you’re living separately but are saving to buy a house together, figure out how each of you will contribute to the goal. Put together a plan for how much you want to save and when you’d like to save it by to help you budget.

Also, keep in mind that debt and credit score change over time. If your credit score(s) aren’t where you’d like them to for buying a house, talk through ideas with your partner to create an action plan to improve them.
 

2. Starting a family

Starting a family, regardless of the path you take, is a big financial responsibility and investment. Just like with saving for other major financial goals together, it is important to ensure you’re on the same page. Key questions for this conversation include:

• Do you want to have kids, and how soon?
• Are you hoping to have a small or a big family?
• Is your current living space big enough for a family, or will you need to move?
• Will both of you still work, or will one parent stay at home?
• What additional costs (i.e. buying a crib, diapers, daycare) will you need to factor into your budget?

3. Emergency preparedness and retirement

Planning for the future wouldn’t be complete without a conversation regarding retirement and emergency savings. Here are some key points to discuss:
 

• Do either of you have an emergency savings fund? How much should you have in emergency savings? The golden rule is to have at least six months’ worth of living expenses saved in your emergency fund.
• Do you have any retirement savings – 401K at work, IRA?
• How much of your salary, if any, are you currently contributing to retirement savings?
• How much would you like to have saved before retirement?
• Do you have life insurance?

Understanding your future income potential is just as important as sharing your current finances. Come up with a long-term plan that works for both of you.
 

4. Sharing and planning out financial goals

Not all financial goals need to be serious. Talk about any ideas together – is there a special trip you’d like to take? A sound system you’ve been saving up for? Have you always wanted to ride in a hot air balloon? Feeling comfortable enough to talk about your dreams, big or small, will help you get one step close to making them a reality. 

If you and your partner have differing opinions on certain topics, don’t get discouraged. Make sure to keep an open mind and fully discuss all options so you both get a good idea of each other’s perspectives and how to come up with a plan that you’re both comfortable with.

Have questions about how to budget for any of your financial goals? Get in touch with one of our banking experts and schedule an appointment at your nearest Dollar Bank office - we can help!



This article is for general information purposes only and is not intended to provide legal, tax, accounting or financial advice. Any reliance on the information herein is solely and exclusively at your own risk and you are urged to do your own independent research. To the extent information herein references an outside resource or Internet site, Dollar Bank is not responsible for information, products or services obtained from outside sources and Dollar Bank will not be liable for any damages that may result from your access to outside resources. As always, please consult your own counsel, accountant, or other advisor regarding your specific situation.