Are you in a financially incompatible relationship?
Some new research from Scottish Widows has found that one in five Brits are living in a financially incompatible relationship.
The survey of couples included those living together, living separately and those who are married.
It found that nearly one in five, 17%, wished they had discussed finances at an earlier stage in their relationship.
More than a third of divorcees said that persistent financial worries were a reason their relationship ended.
The findings show that financial incompatibility, including a lack of share financial goals and different attitudes towards spending and saving, causes friction in people’s relationship.
One in five (20%) say they wish their partner would save more for their future, more than a quarter (27%) say their partner’s spending is impacting their ability to save and 17% say a lack of shared goals has put a strain on their relationship.
They research also points towards an unwillingness to be open about financial matters with partners.
According to the research, 11% of people do not share salary details with their partner.
Furthermore, more than half (57%) don’t know how much their partner has in their separate personal bank account.
25% of married Brits with a separate bank admit to keeping a separate stash of cash for themselves.
Older generations are happy to disclose financial information much sooner than younger people.
When asked at what stage they feel happy discussing finances with their partner, around one in ten (8%) millennials say they are immediately comfortable talking about money compared to 34% among the over 55s.
Spending habits may be preventing couples from moving into together; 41% of Brits who are in a relationship, but currently living separately, say that their partners’ spending habits are impacting their ability to save.
Catherine Stewart, retirement expert at Scottish Widows, said:
It’s important that couples – at any age – have open and honest conversations about their finances to make sure they have an understanding of their individual longer term financial goals.
Some people may be more inclined to focus financial conversations on big life events like buying a house, having a family, or taking time out from work to travel together. Life after retirement should also be on this list; having a good understanding – early on – of each other’s retirement goals will help to ensure couples can work towards a realistic joint financial plan.
Financial Planning can offer a cure to a financially incompatible relationship.
Working as a couple to define your shared aspirations and then understand the financial resources needed to make them a reality is a great way to move from incompatible to compatible, as far as money is concerned.
With Valentine’s Day this week, perhaps making an appointment to meet with a Financial Planner could be seen as a romantic gesture; what better way to demonstrate that you love your partner than to get on the same page as them financially!
