4 Things Couples Should Know About Money Before Moving In Together
If you plan on living with your significant other, it’s a good idea to be familiar with each other’s financial standing and history.
Knowing how you and your partner value, earn, and spend money helps you both understand each other on a deeper level—as well as prepares you both for a healthy financial relationship.
In this article, we’ll dive into 4 money issues every couple should know before moving in together.
1. Money mindsets
How do you and your significant other value money? How do you feel about wealth, spending, and saving money? This is called your money mindset.
There are 4 different types of money mindsets:
The Saver: Values saving as much money as possible rather than spending it to prepare for a financially secure future.
The Spender: Enjoys spending money more than saving to enjoy their money now instead of later.
The Builder: Values exploring new ways to earn and save money, particularly investing or growing a business.
The Giver: Likes using their money to provide for friends, family, and charities more than their own needs or desires.
Talk to your partner about their money mindset. Ask each other about your childhoods, how money affected their upbringing, how they learned to manage money. This will help you learn each other's money mindsets and bring clarity to how you’ll use money together under the same roof.
2. Debt and savings
This may be a difficult conversation to have as debt and/or a lack of savings may cause feelings of embarrassment, but we promise there’s nothing to be ashamed of. Being honest about your outstanding debt and state of your savings is an essential money issue to know before moving in with your partner.
Whether you and your partner plan to marry or not, learning about debts you have, debts you plan to take out, and money you want to put back helps you both use your money together to keep your household finances balanced.
3. Income and spending
It’s common for one partner to earn differently than the other. Learn each other’s income to be on the same page about your financial spending and savings plan. No matter who brings home more money, you both should have equal control over your shared finances. This is not to say you should police each other’s income or spending.
For example, if your partner wants to purchase a new TV, you shouldn’t control their decision to do so. However, you both should talk about the purchase beforehand and weigh the pros and cons about its financial impact. Why? You both share the responsibility of being financially stable to support your home.
4. Home expenses
Speaking of your home, it’s important to make a list of monthly and annual expenses you’ll both pay while living together.
These expenses range from fixed expenses like rent or mortgage to flexible expenses like the TV we mentioned earlier. We recommend creating a spending and savings plan with your partner to map out how you’ll manage your bills each month, and how you’ll save a portion of your income to reach your shared financial goals.
Some questions to ask your partner are:
“When are our bills due and when will we pay them?”
“Will we pay our bills together or separately?”
“Should we open a joint savings account to fund our financial goals?”
Financial planning for couples
Moving in with your significant other can be an exciting step in your relationship. Make sure you discuss money and how you’ll use it together to strengthen your bond and reach your financial goals.
If you and your partner need financial guidance to build your spending and savings plan, or would like to speak with a professional about your money goals, we are glad to help!
Sources:
Money and Marriage: 3 Tips to Talk Finances and Prepare For the Future. (n.d.). Retrieved September 23, 2022, from https://www.betterup.com/blog/money-and-marriage
What couples need to know about money before marriage. (n.d.). Retrieved September 23, 2022, from https://www.rbcwealthmanagement.com/en-us/insights/finances-what-couples-need-to-know-about-money-before-marriage
