WHAT WE’RE TALKING ABOUT: FOUR MONEY TALKS EVERY COUPLE SHOULD HAVE
Globaleye is an independently-owned firm of private Wealth Managers with headquarters in Dubai. CEO and Chairman Tim Searle offers advice on the 4 important money talks that every couple should have.
Communication (or lack thereof) is one of the prominent reasons couples break up. If couples avoid talking about finances, one partner may become contempt with the other, and end up being ‘hard on the person’ yet ‘soft on the issue’.
A survey by American Express found that 45 percent of couples have arguments about finances, 91 percent of individuals try to avoid talking to their partners about finance all together, and talking about money causes the most stress in the relationship for 3 in 10 couples.
Shockingly, one-quarter of couples wait until the wedding plans are set to actually discuss their finances, and another fifth don’t talk about money at all until after they are married, according to the same survey.
So it seems that this topic needs to be discussed, but how do you approach the subject and what do you talk about?
Here are a few pointers on how to lead the conversation.
1. Do you have life insurance?
If one partner is either working from home or staying home and looking after the children, there need to be provisions in place to support the family if they are unable to continue their role. This form of protection is therefore not only important for just the working spouse.
Seeking protection through insurance is an easy way to safeguard your family should unforeseen circumstances ever occur.
2. How are your savings and investments?
Your partner can bring both good and bad financial history to the partnership. For example, he/she could be a spender or a saver, or perhaps your partner likes high-risk, high-return investing.
Make sure you ask your partner about their savings habits and find out if they are interested in setting aside money for your future together.
3. What about your liabilities?
Sometimes partners may be shouldering a debt they are hesitant to talk about such as mortgages, overdrafts, car loans, and student loans.
It’s important to remember that your partner’s credit rating can affect yours even after a split.
4. Are you prepared for retirement?
Couples must work together for financial security throughout their life. You may have a working spouse who is investing in a pension, or your spouse may be reliant on you for retirement income. In both cases, it is important to safeguard the future by contributing towards a retirement plan that helps you maintain yours and your partner’s lifestyle when no longer in employment.
These talks are never fun, and can often be tricky to navigate. You may find that you come across some challenging decisions in your discussion, for example, whether or not to merge finances, or perhaps adapting your personal money habits to suit the partnership. It’s important that these discussions are out in the open though as even for expenses such as holidays, open communication and agreed-upon expectations between couples is crucial.
From investments to insurance, Globaleye’s Wealth Management expertise provides unbiased financial planning solutions for over 15,000 clients worldwide from their head office in Dubai, with additional offices in the Middle East, Asia, and Europe.
Tim Searle is the CEO and Chairman of the Globaleye Group.
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Dubai, United Arab Emirates