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Nothing takes the romance out of a relationship quite like financial stress. But there are solutions.
"[Financial challenges] are the leading cause for separation and divorce," says Lesley-Anne Scorgie, '05 BCom, a financial coach and founder of MeVest, a financial planning company. If the individuals in a relationship work to understand each other's financial behaviours, address concerns and work together toward common goals, she says, they can achieve a lot together as a team.
For Scorgie, the hurdles that couples face dealing with money could fill a whole book - specifically, The Modern Couple's Money Guide: 7 Smart Steps to Building Wealth Together. Published last year, her book uses basic principles of budgeting and open communication to help couples get out of debt and plan for the future.
Combining finances and household duties can be hard to navigate. Couples often encounter problems over their romantic partners' debts, spending habits and money management. To avoid unnecessary friction, she recommends couples have honest conversations about the state of their bank accounts and credit bills.
"They don't know how to be better with their money, so they are embarrassed and they don't feel that they are equipped with the skills to improve it. So couples just sweep it under the rug." But the mess is bound to come to light eventually.
So, whether you're co-habiting, heading to the altar or already growing old together, here are four tips to financial - and maybe more blissful - coupledom.
1: Talk about your goals
Don't avoid money talks - plan for them. "They don't have to be long talks. I'm talking five minutes a week," says Scorgie. Whether it's purchasing a home, having children or travelling, determine what you want to accomplish together. "It's important to know where you stand before you can set any sort of goals for the future."
2: Make a budget
"Without a jointly agreed upon budget, it is almost impossible for a couple to achieve anything financially," says Scorgie. Balance sheets that record household income and expenses are the most effective tool for financial accountability. And, like anything in a relationship, without accountability, you can't achieve much.
3: Make your own grass greener
Don't spend yourself into debt trying to one-up your friends and neighbours. "People can waste a lot of money trying to look rich. It just begs the questions: who are we following, why are we doing it, and how is it impacting our finances?"
4: Don't be a hero
Financial plans often require outside help, and the best time for an accountant, financial adviser or other form of money coach is right after you form your permanent household. "Sit down, get a referee in there, get the budget on track, get a plan on track, get some advice and learn to do this together."
The original version of this article was published in the Spring 2017 issue of UAlberta Business magazine.
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