Are you in a new relationship? If you're getting serious, it's time to have the money talk.
“Relationships need love and trust, but they also need financial teamwork,” says Perry Quinton, the vice president of marketing for the Investor Education Fund (IEF). “Even if you have different money habits, you can make your differences work for you.”
For example, one person may be a saver while the other likes to spend. Or you may have different comfort levels with investment risk. “It can work to put one person in charge of tasks they're better at, but open communication is key,” says Quinton.
Here are four tips to make your finances work as a couple:
• Bare it all - financially. Figure out where you stand as a couple. Look at everything you own and owe, from bank balances to credit card statements. This may feel awkward or difficult, but it can help you avoid problems down the road.
• Decide how you'll manage your day-to-day finances. Will you have a joint account or keep it separate? How will you handle your monthly bills?
• Set goals and make a plan to achieve them. Whether your priorities are to get debt-free or to buy your first home, you'll need to agree on a plan to get there.
• Talk it out regularly. Have a regular money meeting to trouble-shoot any issues and help you keep your plans on track.
Learn more by taking the love and money quiz online at www.GetSmarterAboutMoney.ca.