Financially Compatible Couples
You’d think the decision to move in with your significant other would be based on love. But according to a recent survey, 63% of people who have moved in with their romantic partner did so for financial or logistical reasons.
At the same time, a separate survey found 64% of couples feel “financially incompatible” with their partner — meaning they have different philosophies when it comes to spending, saving, and investing their money.
Before taking the leap of co-signing a lease, it’s important to make sure you’re both on the same page financially.
Regardless of your age, marital status, or financial situation, expert advice regarding couples and money remains fairly consistent.
Like all forms of healthy communication, it’s all about transparency. Sit down, open your books (or banking app), and conduct a quick financial show-and-tell. This allows you both to see the big picture – each other’s debts, savings, and financial goals.
For couples in the early stages, you’ll likely spend most of this session establishing a plan for the future, determining how to split expenses, and deciding how to pay your bills. Then plan to do an annual review of the household budget, set goals, and attempt to maximize shared resources. More established couples will need to incorporate paying down debt and estate planning in anticipation of retirement.
Yours, Mine, & Ours
Especially for younger generations, the idea of splitting rent or a mortgage can be attractive to make things more affordable. 76% of Millennials and 80% of Gen Z cited money as the motive for moving in. And it is a way to save money — for 43% of respondents, the decision saved them more than $500 a month.
But living with your significant other is a significant decision. Moving in together is a major step toward “your” money becoming “our” money. Still, as long as you’re in agreement on what to do with it, there’s no reason not to share the wealth.
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