Valentine’s Day has been a global marketing phenomenon for several decades. However, apart from romance, finances also play an important role in understanding within a couple. Whether you spend a significant amount on dinner and gifts or choose to watch romantic comedies at home, all of this has a financial expression. Different understandings about managing family and personal funds are often a cause of conflict at home.
According to a survey by the American financial company Fidelity, 45% of partners admit that they argue about money at least occasionally, while one in four couples identify money as the biggest challenge in their relationship. In the study, published for the first time a year ago, 90% of Americans say they communicate well or very well with their partner on the topic. Fidelity provides several tips on how couples can better manage their joint financial well-being. These are fully applicable to any country in the world, including Bulgaria.
In Bulgaria specialized studies on household finances are rarely conducted and they are more focused on the income and expenses of the families. Data such as these is regularly published by the National Statistical Institute, and according to recent surveys, Bulgarian families rely primarily on income from wages, less on pensions and self-employment income. As of the end of September 2024, 28% of all household expenditures went towards food and beverages, and just over 15% for housing. Bulgaria is among the countries where food expenses take up a rather large portion of the family budget.
What advice does Fidelity give to couples in love to manage their shared finances with fewer conflicts and more effectively? Here are six valuable tips:
- All cards on the table.
Literally and figuratively, do not hide your financial situation and expenses, without hidden credit cards and secret accounts. Hiding financial secrets may help you avoid a difficult conversation in the short term, but in the long run, it will only undermine trust and sabotage your communication. At the earliest possible stage of the relationship, provide full information about your finances to the person you want to be with. If you haven’t done so, it’s never too late for an open conversation to know who has what income, savings, and investments, respectively – and what obligations.
2. Ensure both have equal access to financial information
Make sure both of you have easy access to your financial information. Even if one partner takes care of the main expenses, the other should know how to access important documents and accounts. This is useful because in case of an incident with one of you, even temporary incapacity, the other should know what to do. Of course, there are personal accounts and small personal expenses that don’t need to be shared, as long as they don’t involve large sums from your shared budget.
3. Focus on your shared goals.
It’s not unusual for couples to have different financial habits or values. Maybe one of you is more frugal, while the other prefers to live for the moment and spend. Instead of arguing about differences, try to stay focused on long-term goals. This will help you find consensus and daily financial habits to achieve them.
4. Be open about your concerns
Even if you accept some differences, that doesn’t mean you should keep quiet if you have concerns. Around 27% of partners in the Fidelity survey say they are often disappointed by their partner’s financial habits but remain silent to maintain peace. While it works in the short term, it can lead to growing resentment in the long term (or growing bills if your partner really has problematic habits). Better yet, find a way to raise the issue and discuss it constructively.
5. When it need, seek for more information
On the verge of an important decision, you might be on different sides. Instead of arguing, give yourselves time to find additional information. Try to make calculations under different scenarios and think about how the decision could affect your long-term goals.
6. Don’t hesitate to seek professional help
Working with a financial professional can bring numerous potential benefits to the financial health of your relationship. A professional can help each of you define your own goals, how to work together, and also assist in planning investments, family budget, and taking out loans.
Human relationships are complex, and there is no one solution for everyone. At the same time, family finances are a topic that should not be avoided, because hidden expenses (and incomes) can turn out to be the little stone that overturns the romance.
Happy and loving Valentine’s Day!
