This is a guest post written by Dannielle at Odd Cents as part of the latest Yakezie blog swap. If you would like to see my post please visit Odd Cents; well, visit Odd Cents anyway.
As it stands right now, my boyfriend and I each manage our own finances and we keep our assets and bank accounts separate. I would be the first to admit that I’m very independent and the thought of sharing my finances with someone else is scary. I came up with a few things which explain how I manage finances in my relationship.
Talking about money
Although some of the tips that I will mention can be classified as talking about finances, I still think there is room to talk about money. Both partners should understand the importance of money and how it can affect the relationship. It’s also important to know how you view money. For example, if I’m a big spender and my hon is a frugal saver, there will no doubt be a difference in money habits.
Managing My Debt Properly Now
Personally, I would not be comfortable with my partner paying off my debt, especially if I was in debt because of bad decisions. Being able to manage my debt efficiently and effectively is something that I believe strongly in. If marriage ever comes into the picture, my debt would become our debt and it will have an impact on both of us.
Being Understanding and honest about our financial situations
If I was in a bad debt position, I would tell my sweetie about it. It does not make any sense hiding it. I would explain how I got into the situation and what steps I’m taking to correct it. If either of us was going through hardships, we should be able to talk about it, so that we can come up with a solution together.
Making a financial plan together
Being in a committed relationship which is for the long term, calls for some type of financial planning. Financial planning includes looking at anything from paying the bills, saving for retirement, children and looking for ways to save on purchases. This is an exercise that requires the input of both people and should be a continuous process and not a one-off occurrence.
I’m noticing a trend here of almost all of the girls being rather independent with their money!
@Andrea: Yes, I have been as well. When I looked as some statistics it became clear that women generally have more of the economic power recently.
I’m relieved to see that you haven’t combined your finances or accounts with your boyfriend – that is so dicey. I cringe when I hear of unmarried couples (even engaged couples) joining their finances in any official way, even buying a house together. Any relationship is complicated – you don’t need to complicate it any more than necessary!
@Elizabeth: I agree with you that Dannielle is wise not to have merged finances. Sometime ago, I published an article on the ways to manage finances as a couple and said that I don’t understand married couples who keep their finances separate. Got quite a few comments saying that this is the way to go and that you can’t trust people…Probably not, but I am not sure I would have married someone who can’t be trusted.