Couples deep into each other might overlook money issues. In fact, financial issues are one of the leading causes of relationship breakdowns in Australia. A 2023 survey by Aussie financial advisor Jessica Brady revealed that 36 per cent of Australians believe that money is the most common cause of relationship conflict.
Despite this, many couples avoid talking about their finances altogether. They may feel uncomfortable discussing money or they may fear that it will lead to arguments or even a breakup. However, avoiding the issue can lead to even more problems down the line.
In this blog post, we’ll explore why it’s important for couples to talk about their finances and spending habits, and provide tips for how to have an honest and productive conversation about money.
Why Is It Important to Talk about Money in a Relationship?
There are many reasons why it’s important for couples to talk about their finances and spending habits. Some of the key benefits include:
- Improved Communication: Talking openly and honestly about money can help improve communication between partners. It can help build trust and create a stronger foundation for the relationship.
- Better Financial Planning: When partners are on the same page about their finances, they can create a budget and financial plan that works for both of them. This can help them achieve their financial goals and avoid unnecessary stress and anxiety.
- Reduced Financial Stress: Financial stress can be a major source of tension in a relationship. By discussing their finances openly, couples can work together to reduce their financial stress and create a more stable and secure future.
- Greater Accountability: When couples discuss their finances and spending habits, they can hold each other accountable for their actions. This can help prevent overspending or other financial mistakes.
Tips for Having an Honest Conversation about Money
If you’re ready to have an honest conversation about money with your partner, here are some tips to help you get started:
- Set a Positive Tone: Begin the conversation on a positive note. Talk about the benefits of discussing your finances together and how it can help strengthen your relationship.
- Be Honest: Honesty is key when it comes to discussing finances. Be upfront about your spending habits and financial situation, and encourage your partner to do the same.
- Listen to Each Other: It’s important to listen to your partner’s perspective and be open to their ideas and suggestions. Try to understand where they’re coming from and work together to find common ground.
- Create a Budget: Once you’ve discussed your finances, create a budget that works for both of you. Be realistic about your expenses and income, and make sure to include savings and debt repayments in your budget.
- Be Accountable: Hold each other accountable for sticking to the budget and meeting your financial goals. One handy tip worth a try is to schedule a monthly check of the accounts and adjust where needed.
- Seek Professional Help: If you’re struggling to have an honest conversation about money or if you need help creating a budget or financial plan, consider seeking the help of a financial planner or relationship counsellor.
Financial Stress Impacting Australian Couples
Let’s take a look at some statistics on couples and finance in Australia to understand the scope of the issue:
According to a survey conducted by Relationships Australia, finances were a common source of stress in relationships, with 20 per cent of respondents reporting that financial issues affected their relationship.
A 2019 report from Westpac Bank even found that at least 36 per cent of Aussies in committed relationships are not financially stable. To add more salt to the wound, 65 per cent of respondent couples considering breaking up were hesitating to make the decision because of the feeling they will have to start over after letting go. On the bright side though, the bank noted that 85 per cent of couples were identified as financially compatible when they were able to talk better about the state of their finances.
A 2022 study by the Australian Securities and Investments Commission (ASIC) and Beyond Blue found that almost five per cent of Australian adults felt financial stress affected their mental health and wellbeing. Some of those respondents admitted they could not sleep at night thinking of the big debts they have to settle. Finder data from the end of FY23 noted that each Australian, on average, has outstanding debts of at least $20,238 – which may be worse if either partner in a committed relationship has some heavy spending habits.
These statistics highlight the need for couples to have open and honest conversations about their finances. When couples avoid talking about money, they may not realise the extent of their financial issues and may struggle to find a solution.
Conclusion
By talking openly about their finances and creating a budget together, couples can work together to reduce their financial stress and create a more stable and secure future. Seeking the help of a financial planner or relationship counsellor can also be beneficial for couples who need extra support in managing their finances.
DISCLAIMER: This article is for informational purposes only and is not meant to replace or supersede official financial advice. All data is based on the most recent materials available as of presstime. 2 Ezi is not associated with any organisation mentioned. Please consult a financial advisor.
