The millennial generation is typically classified by those who are born between the early 1980s and the early 2000s. According to a recent AICPA survey, 88% of millennial couples say financial decisions are a source of tension in their partnerships. In addition, half of them say that money matters come between them on a weekly or daily basis.
It is important for couples, especially young couples, to talk about money, even if these conversations may be tough to have. Because we are creatures of habit, it is easy for each partner to revert to their own spending and saving habits. These habits can conflict. Here is what I suggest to assist in reconciling financial matters in a household.
Figure out which spouse is better at managing money and allow that spouse to take the lead. Relationships consist of two people with certain strengths and weaknesses. The uniqueness of a relationship is how the two work together to enhance the relationship by capitalizing on the combined strengths of the couple.
Talk about your money habits – Ask each other these questions: (1) How did your parents spend money? (2) Do you plan in advance how you’re going to utilize your money? (3) Do you buy things on impulse? (4) How do you feel when you receive money and when you spend money? (5) What makes you happy? (6) What causes you to get upset?
Develop a strategy for how the household will handle money. Many financial managers will attempt to develop a one size fits all financial strategy, but your relationship is unique and your financial plan should be unique as well.
Bring in a coach to help with the heavy lifting. These are tough conversations to have and decisions to make, therefore it maybe good to have a third-party who is independent involved in this process.
Don’t allow money issues to cause an issue in your relationship.