Couples money management
We’ve all heard the good old saying, ‘What’s mine is yours’, but in this day and age, couples are more modern than ever and approach money management in different ways.
If you have a significant other and you are perhaps cohabiting, it’s important to know what’s happening with your money as a couple. It’s helpful to discuss your finances with your partner regularly and openly. Not only will this keep you on top of household finances, but you can also support each other by managing your money responsibly and deal with any issues together.
It’s up to you how you manage your money and we’ve listed the most common ways:
- Have individual accounts;
- Manage everything together;
- Pay your partner an ‘allowance’ if you’re the main earner; or
- Share some responsibilities but keep some things private.
The best thing to do is to work out your current outgoings. This will help you to budget and see where you could be overspending. The most common things that couples spend money on together are:
- Council tax;
- Utility bills (gas, electricity, water);
- Mobile phone;
- Food shopping and household items;
- Insurance; and
- Loan/credit card payments.
Once you have the total balance of your outgoings, the next thing to do is to set your goals and create a monthly budget. Having a spreadsheet helps! You might be saving up for a new house, wedding, a baby or a holiday. Whatever it is, it’s good to be organised and know that you’re in it together.
WARNING: be wary of joint finances if one of you has a poor credit history. As soon as you open a joint bank account or take out a mortgage together, your credit rating could be affected.