How to Manage Your Relationship…And Your Money
CFP Board Ambassador offers tips for talking to your significant other about your finances
Detroit, Mich., February 24, 2017 – It’s always important to keep open lines of communication with your significant other. Talking about money is no exception, but it can be a sticky subject – and one that can bring up issues related to your own anxiety around your finances. It’s time to break the cycle of non-communication and have “the money talk.”
“Communication is critical with couples and money,” said CFP Board Ambassador to Metro-Detroit Robert Schmansky, CFP®. “This is an area where it often is best to bring in a third party for validation, and facilitating conversation and sticking to a plan.”
In the latest contribution to LetsMakeaPlan.org, CFP Board offers tips for how to start a conversation with your partner about your finances.
Set up time to talk: Trying to have a meaningful conversation about money amid a heated argument is fruitless. Instead, set aside a specific time and place to talk about the dreaded topic. You can reduce emotions by setting specific objectives and basic ground rules: No judgments – just open dialogue.
Share information: During your conversation, you should share information including any outstanding debt, investments, bank and retirement accounts, and any bonds you may have. If you’ve never created a balance sheet or estate plan, now is the perfect time to do so! Create a master list of assets and note who owns each, or whether it’s jointly owned. Also include any account usernames and passwords, broker names and contact information, and other account info to share with your partner.
Get on the same page: Make sure you and your partner are on the same page when it comes to financial priorities – retirement, college planning and cash flow management. Do you want to keep separate bank accounts and both contribute to a joint account? There is no “right” answer, but agreeing on a path forward will help avoid confusion in the future.
Divide and conquer: After you have the conversation, divide financial responsibilities that work for each partner’s strength. If one likes to use apps to track spending, they should monitor the day-to-day bills. If the other is more inclined to manage the long-term investments, they should manage those accounts. Make sure you understand the game plan together and allocate tasks appropriately.
If you are having problems talking to your partner about your finances, you might benefit from working with a CFP® professional, who is committed to objectivity and to what is best for you as a couple. An impartial third party can clarify issues, set common goals that you can pursue together, and find solutions that can work for you both.
ABOUT CFP BOARD The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. The Board of Directors, in furthering CFP Board’s mission, acts on behalf of the public, CFP® professionals and other stakeholders. CFP Board owns the certification marks CFP®, Certified Financial Planner™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. CFP Board currently authorizes more than 76,000 individuals to use these marks in the U.S.
CONTACT: Jessica Lewis, Communications Specialist P: 202-379-2256 E:jlewis@cfpboard.org Twitter: @cfpboardmedia
ABOUT ROBERT SCHMANSKY, CFP®
Robert Schmansky is the founder of Clear Financial Advisors of Metro-Detroit. Rob has over a decade of experience helping individuals and families meet their financial goals and overcome money concerns. He is frequently quoted in the media on issues regarding personal financial planning, and has been a contributing writer for U.S. News & World Report, Forbes, Investopedia, and Yahoo!Finance, and an investment expert for FiLife, a former Dow Jones/IAC joint Internet venture. He has been an adjunct instructor of economics and the required courses for candidates to sit for the CFP® exam. Investment News selected Rob as a 2015 40 Under 40 financial planning professional and he is the 2013 PlanPlus Global Financial Planning Awards North American finalist.
CONTACT: Robert Schmansky, CFP® P: 248-677-1762 E: rob@clearfinancial.net W: www.clear.financial Twitter: @moneyclarity
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