How to manage your finances in a committed relationship
Should you manage money jointly or separately?
Managing your money together when you’re in a serious relationship can be tricky, but planning can help you avoid headaches and arguments over money.
According to the Money Advice Service, there’s no ‘one size fits all’ approach and how you manage your finances will depend on both partners’ attitudes toward money.
You might find some areas where you’re happy to share the responsibility, but others where you need to reach a compromise.
Before you get started, try to understand each other’s approach and attitude to money. This will help you find areas where you agree – and disagree – so you can spot potential problems before they happen.
There are many aspects to keep in mind when deciding to manage your finances together. When you open a joint bank account, you’ll both be responsible for any debt or overdrafts, so it’s vital that you trust each other, and according to the Money Advice Service communication is key.
It’s important to set boundaries and to be clear what level of financial independence you need. You can try setting a spending limit, so anything above that amount will need a joint decision before you buy it. A mutual understanding means you’ll both know what you can and can’t afford and that if something were to happen to one of you, the other would have an idea of their financial affairs.
It’s important to know exactly what’s happening with your money as a couple, so discuss your finances with your partner regularly and openly. This will help you both stay involved with household finances, manage your money responsibly and deal with any issues together.
The Money Advice Service offers a handy budget planner for partners who share their finances. You can download it here: https://www.moneyadviceservice.org.uk/en/tools/budget-planner/start
Source: The Money Advice Service
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