Are you and your partner financially compatible?
Debt, bills, spending and saving are frequent sources of anxiety in a relationship. Understanding your “financial fit” with your partner is a measure of compatibility and may secure long-term happiness.
“Money is one of the biggest areas of conflict between spouses, and talking about it today is an excellent way to avoid unpleasant surprises tomorrow,” said Dennis Tew, chief financial officer of Franklin Templeton Investments Corp. “Getting on the same page financially helps ensure you are pursuing compatible goals.”
Consider the following:
• Share financial histories. Discuss your credit histories, including debts. Are you both spenders or savers, or are you opposites? How do you set priorities and allocate funds? Do you budget and plan, or spend impulsively?
• Communicate your goals. Discuss what your future entails. What type of lifestyle do you expect to have? Does it include travel, a larger home or other major expenses? When do you want to retire and are your current RRSP contributions sufficient? Create a financial plan that takes into account both of your goals.
• Consider your investments. Choose a financial advisor together. Get advice on how to align your portfolios with your family goals. Regularly review what investments you have and ensure you both understand how your money is working for you.
More information on the benefits of financial advice and planning is available at www.franklintempleton.ca.