Whatever your financial situation, it’s always best to be open and honest with your significant other. Finances usually cause the biggest issues in a relationship. If they’re not discussed early, they may only get worse.
Here are some of the worst mistakes that young couples make regarding their finances:
Not Communicating Enough
Money is something that must be discussed. What are your partner’s spending habits? How do they save money? Do they have a budget? Not communicating early can lead to problems down the line.
Not Having Clear Goals
How much do you want to save each month? Even answers to simple questions like that are beneficial. It gives you a foundation on which to create a budget.
Not Having a Smart Budget
Young couples right out of college sometimes struggle with budgeting. Their lifestyles inflate because of new jobs and larger paychecks. Be sure to create a budget together for your combined spending and account for monthly savings.
Waiting to Save for Retirement
Young couples tend to ignore retirement planning because it seems so far away. Waiting too long is a huge mistake. Find smart investment opportunities and contribute to your 401(k).
Relationships require teamwork. So do your finances. Designating one person to manage everything and make all the decisions can lead to arguments. The person responsible may feel burdened and the other may feel out of the loop. Tackle it together.
Keeping Money Secrets
This includes not telling your partner about large amounts of debt and hiding stashes of money and/or expenses. These secrets violate trust and can end up becoming large problems. Honesty is always best. You don’t want the first time your partner learns about your debt to be when you’re applying for a mortgage.
Not Planning for Emergencies
You may think it’ll never happen to you, but emergencies will arise. If you’re not prepared, they can cause major strain. You typically want to have at least three months of income saved up.