The Benefits of Shared Financial Decision-Making in Marriage
May 11, 2023
Many factors go into a healthy marriage, and not least among these is shared financial decision-making. Financial decisions are rarely easy for one person to make, let alone two. But when a couple approaches financial decisions as true partners, working toward common goals, the benefits are significant.
In this article, Haley LaRue, CFP®, Boulay Wealth Manager, discusses how married couples can use shared financial decision-making to build wealth together.
The Benefits of Building Wealth Together
There are a variety of ways a couple can manage their finances in marriage, depending on their specific needs and circumstances. Many couples choose to completely commingle their finances, some use a “you, me, we,” system, while others opt for separate accounts.
No matter what system a couple chooses, they are bound to need to work together on a number of important financial decisions that impact both of their financial futures. Fortunately, shared financial decision-making can positively impact a marriage in several ways:
- Increased trust. As partners set goals and work to reach financial milestones together, trust will naturally grow. Shared financial decision-making requires the spouses to lean on each other for support and advice, bringing the couple closer together.
- Improved communication. Talking about finances is a great way to practice open, honest communication. Money can often be an uncomfortable and emotional topic. But when partners communicate openly and work to understand each other’s financial attitudes and habits, the result is better teamwork and stronger financial decisions.
- Reduced conflict. Financial disagreements can be a major source of conflict in any relationship. But when both spouses have a say in how money is handled, they can hold each other accountable and compromise to reach middle ground. Further, sharing the work and responsibility of financial decision-making may help minimize any feelings of resentment or imbalance.
- Better financial outcomes. When each spouse brings their unique perspectives and expertise to the table, they can collaborate to make decisions that align with their shared goals and values, while avoiding impulsive or risky financial choices. Together, the couple can clearly define and work in partnership toward their shared financial goals.
- Peace of mind. When a couple shares the task of financial decision-making, each spouse is more likely to have a comprehensive understanding of their financial situation. Now, they are better equipped to handle the unexpected—providing greater peace of mind that each spouse’s financial future is secure.
Helping You Get There…
Even if you understand the benefits of shared financial decision-making, it can still be challenging to implement in your marriage. Here are a few helpful tips as you work to build wealth together:
- Discuss your long-term plans and dreams with your partner, such as buying a house or saving for retirement, and set clear goals accordingly. Having shared goals in sight can help keep you focused and united as you work together to achieve them.
- Ensure both partners are present and involved in important financial decision-making meetings, such as meetings with your wealth management advisor. This way, both spouses can get answers to their questions and make sure their ideas and opinions are heard.
- Stay organized and make sure both partners have open access to accounts, passwords, contact information, financial paperwork, etc. With shared access, both spouses are able to carry on without the other if needed.
- Hold frequent check-in meetings as a couple. Here, you can encourage each other’s financial literacy, learning and growth. You can also communicate openly and honestly about your goals, concerns and ideas and ensure you’re on the same page.
- Work with a trusted wealth management advisor. The right advisor will understand, prioritize and encourage your shared financial decision-making, to help you build wealth together.
To talk to a wealth management advisor who is dedicated to helping you get there, connect with a member of the Boulay Financial Advisors, LLC team today.
Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
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