Finances for Couples

When a couple begins to look more seriously at one another as a lifetime partner, it is time to talk about many topics. Finance is just one of them.

From how one spends to how one saves, there are many areas of finance which need to be discussed and negotiated before those 'I Do's are said.

SPENDING

One IRS study cited the number one cause of financial failure as the "Inability to delay gratification".

According to Jeanne M. Hogarth, author of Financial Fitness, Shape Up Your Spending (Prepared for Cornell University), there are five money-spender types:

Type 1 sees money as a symbol of security and spends only for what they need.

Type 2 uses money to buy status or prestige items. They want 'the best'.

Type 3 may be self-indulgent, and spends as a means of satisfying their need for immediate gratification.

Type 4 believes money helps a person fulfill himself or herself. They believe money can't buy happiness and that children should not learn to put a monetary value on everything.

Type 5 is not concerned about money and doesn't keep track of their spending.

Determining which type each of you are can help you to formulate a strategy for your spending and saving which both of you can feel good about.

SAVING & INVESTING

Interest can work against you. . .or for you. Albert Einstein said of compound interest that it was the greatest invention he had ever seen; and Mayer Amschel Rothschild, founder of one of the world's greatest banking dynasties, called it the eighth wonder of the world.

A few great tips about saving and investing may be found on this Financial Fitness Tip Sheet. There is enough space on the bottom of it to add any additional tips you may know or discover along the way.

Whatever you do, it is crucial that you have a saving and investing plan for emergencies, financial goals, and retirement.