{"id":14498,"date":"2024-06-06T10:06:34","date_gmt":"2024-06-06T14:06:34","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-eu\/?p=14498"},"modified":"2025-01-07T10:23:20","modified_gmt":"2025-01-07T15:23:20","slug":"how-to-talk-about-money-with-your-partner","status":"publish","type":"post","link":"https:\/\/www.rbcwealthmanagement.com\/en-eu\/insights\/how-to-talk-about-money-with-your-partner","title":{"rendered":"How to talk about money with your partner"},"content":{"rendered":"\n

One of the best parts of sharing a life with someone is doing what you love with someone you love. However, being in a relationship typically requires making decisions about money as a couple, which means financial conversations with your partner become a necessity.<\/p>\n\n\n\n

Our attitudes toward money can have a huge impact on our relationships, so how we discuss our perspectives and motivations with our partners can be the key to equitable financial decisions.<\/p>\n\n\n\n

But no matter how long a couple has been together, it can be hard to start a conversation about money, points out Lucy Day, director, Relationship Management at RBC Wealth Management in the British Isles. \u201cThis is particularly true if someone feels that they don\u2019t understand the subject, or one partner might feel they have less knowledge and experience than the other \u2013 it can feel awkward and uncomfortable to discuss it,\u201d she explains. \u201cCouples often shy away from getting involved in these conversations or worry that there might be fundamental differences, so they\u2019ll avoid the subject to prevent disagreements.\u201d<\/p>\n\n\n\n

Indeed, a 2023 RBC Wealth Management survey of UK high-net-worth individuals revealed that women were nearly three times more likely than men (29 percent versus 10 percent, respectively) to feel they lacked sufficient understanding of wealth management topics.1<\/sup><\/p>\n\n\n\n

This is pertinent, as life expectancy at birth in the UK is higher for women (82.9 years) than for men (79 years),2<\/sup> so it\u2019s likely that some women will need a more solid understanding of their financial position to prepare themselves for the possibility that their spouse will die or become incapacitated before them.<\/p>\n\n\n\n

Differences in financial confidence are not defined by gender though, and both partners should engage in open and honest conversations about their financial situation and ambitions.<\/p>\n\n\n\n

Making financial decisions as a couple<\/strong><\/h2>\n\n\n\n

If discussions about money are to be productive, it’s first important that each person feels supported and empowered to make decisions.<\/p>\n\n\n\n

\u201cTaking into account each partner\u2019s perspectives and attitudes can produce a more considered and balanced financial strategy,\u201d says Annabel Bosman, regional centre head, London and South-East, for RBC Wealth Management Europe. \u201cIt\u2019s essential that both partners, whether they’re married or in a long-term relationship, agree on their joint financial strategy and set out their short-, medium- and long-term savings and retirement goals. This gives you a common vision to work toward.\u201d<\/p>\n\n\n\n

Bosman says that although couples will naturally talk about their day-to-day finances, they will often avoid discussing the bigger picture with each other \u2013 even if it\u2019s on their minds.<\/p>\n\n\n\n

\u201cIf you\u2019re each having those thoughts in isolation, then, quite often, particularly with family finances, it\u2019s very easy to make assumptions about the other person\u2019s views and assume that you\u2019re both on the same page, when, actually, you\u2019re not,\u201d she says. \u201cEven if the big conversations and themes around money aren\u2019t aligned from the outset, you\u2019re bringing them out into the open, encouraging debate and finding that common ground rather than discovering these differences when it\u2019s too late.\u201d<\/p>\n\n\n\n

Having financial discussions without fear of embarrassment<\/strong><\/h2>\n\n\n\n

Consulting with an independent third party with specialist financial knowledge can be helpful when it comes to managing emotions and developing a strategy for your long-term wealth. For example, a wealth manager can help<\/a> ensure the partner who doesn\u2019t earn as much as the other, or who feels they have less financial knowledge, is brought into the discussion and encouraged to contribute.<\/p>\n\n\n\n

\u201cThe important thing for me when we\u2019re around the table is to make sure that everybody understands what we\u2019re talking about \u2013 and if they don’t, they can feel free to say, \u2018I don\u2019t really understand this.\u2019 Everyone’s perspective is valid,\u201d says Day.<\/p>\n\n\n\n

As is the case with any aspect of financial planning, it\u2019s never too early for couples to speak to a wealth manager<\/a> \u2013 younger couples, in particular, can \u201cstart early and start small,” says Bosman, who adds, \u201cit\u2019s great if they can come to the table with some notion of shared values and what they’re trying to achieve with their wealth. If not, that can form part of the conversation.\u201d<\/p>\n\n\n\n

\n

Planning that powers your ideas<\/h4>\n\n\n\n

Contact<\/a> our wealth planning team to put your wealth plans on a path for success.<\/p>\n<\/div>\n\n\n\n

Topics a wealth manager might bring up<\/strong><\/h2>\n\n\n\n

Discussions often start by identifying short-, medium- and long-term actions and goals. The more immediate topics on the table might be the level of a couple’s investment risk and the need for available cash. \u201cThe conversations are more about identifying shared goals and values than diving into numbers straight away,\u201d says Bosman. \u201cYou can then work backwards from those and build a financial roadmap of how to get there.\u201d<\/p>\n\n\n\n

Long-term topics a wealth manager might explore with a couple include:<\/p>\n\n\n\n