Should you Combine Finances and Collaborate on Financial Decisions?
Conversations about debt, budgeting, or investment strategies typically aren't great first-date material. It isn't romantic to ask a potential partner about their 401(k) contributions or to grill them about their debt tolerance. Save these talks for later when the relationship is well established and you're becoming increasingly part of each other's lives.
But what if those conversations never happen?
What if you end up marrying this person, sharing a household, having children, and filing jointly on tax returns every year…but you've never taken the time to sit down and discuss your finances in any depth?
This communication gap happens far more frequently than you might realize. People can live together for years without discussing their investment philosophies or debt tolerance. They can live alongside someone for decades and never truly know their thoughts on money management or financial goals.
Having honest, open conversations about finances and collaborating on financial decisions is critical. Even if you're not married, talking about money is essential. Sharing your views on your finances is vital for building trust and understanding between two people and paving the way for a strong and healthy relationship. Money is the foundation of many major decisions you'll make together, such as sending your kids to college, buying that lake house, planning vacations, and strategizing for retirement, so having a shared understanding will help you prepare for those eventualities and make decisions that best suit you both.
Let's discuss why and how to share financial information, make unified financial decisions, and combine finances with your significant other. Failing to do so could be incredibly costly.