More than one-third of Canadian couples fight about finances, but the majority see eye-to-eye about monetary goals, a special Valentine’s Day report from the Bank of Montreal (BMO) has found.
The BMO Real Financial Progress report says that the majority of Canadian couples—82 percent—are compatible in their financial goals. More than two-thirds of couples also said they share equal responsibility for initiating discussion about household finances and setting goals for their family.
Differing opinions on finances is a source of conflict for some, however, the report found. Twenty-four percent admitted that different levels of income have “created tension” in their relationships and 36 percent say they are not always truthful with their partner about their finances.
The report also found that 32 percent of Canadians in romantic relationships fight about spending and 35 percent believe their significant other spends too much.
Ms. Ramsay said understanding your partner’s financial goals, spending habits, existing debt and financial obligations are all part of a harmonious relationship.
Talking About Money
More than half of those surveyed by Ipsos on behalf of BMO agreed that talking about money with their significant other is important.Ten percent said the conversations should occur after the first few dates and 41 percent said finances should be discussed when the relationship becomes official.
Nearly one-third believe financial conversations should happen when moving in together and 12 percent said they shouldn’t occur until one gets engaged or married.
The majority of those surveyed, 82 percent, said they’ve combined their finances with their partner, compared to the 18 percent who have not.
Just like behaviour related to personality can be a deal-breaker in a relationship, so too can financial attitudes or habits.
Forty-seven percent of those surveyed said they would be most concerned about their partner’s mortgage debt when evaluating finances. Thirty-eight percent said they’d be concerned about credit card debt while 33 percent would worry about their partner’s credit score.
Generational Differences
The survey discovered responses tended to vary from generation to generation. Gen Z couples (ages 18-24) were most likely to share equal responsibility for initiating conversations about household finances and setting a household budget.However, they were also the generation that was most likely to lie to their partner about money, with 42 percent admitting to financial deceit. Younger Millennials—those aged 25 to 34—also copped to lying, with 32 percent saying they aren’t always honest about their finances.
Both age groups were also more likely to think their partner spends too much money.
“It is important to communicate your financial expectations early and frequently in order to build a financial future together,” Ms. Ramsay said, adding that “financial fidelity” is important.
How to Manage Money in Relationships
Getting on the same financial page with your partner is a matter of honest communication, diligent planning, setting shared priorities, and seeking help when needed, according to Marriage.com.1. Set Priorities
Financial disagreements can be sparked by an occasional spur of the moment purchase or ongoing bad habits. The key is to prioritize spending issues that could lead to long-term issues.2. Set Aside Time to Talk
Scheduling a regular budgeting meeting can help you to stay on track as a couple and also helps you to avoid frequent squabbling over money-related issues.This is a time to talk about staying on budget and paying off debt, but it can also be a time to talk about saving for something exciting like a home renovation or a vacation.
3. Planning Ahead
When it comes to household finances, winging it is unlikely to lead to a harmonious relationship. Planning is essential when it comes to income splitting and bill payments as well as joint and separate finance plans.It’s important to divvy up expenses fairly. For some couples that might mean a 50-50 split but for other couples, it could mean a certain percentage of each income is used toward paying bills.
