6 Money Stories to Share With Your Partner

6 Money Stories to Share With Your Partner

When you start dating, you usually start off sharing stories. Tales of your childhood, your previous relationships and your college days. Those stories help explain to your partner who you are and how you act. Sharing those stories is a vulnerable process and can either deepen the bond or widen the gap.

But those aren’t the only stories you should share with the person you care about. Money is an important topic to get comfortable talking with your partner about. In general, money can fuel some passionate responses and with each of you bringing your own money histories into the relationship, learning to communicate and understand what you’ve each experienced around your finances can help to build a stronger financial foundation.

Here are six stories to share.

How was money handled in your house growing up?

How your parents spent money determines how most people handle their finances into adulthood. Watching your parents struggle to pay the bills could be why you’re so frugal now. Knowing you had to work for an allowance and spending money could be what contributes to your work ethic. If one parent handled all the bills or doled out an “allowance” to the other, that could be why you take an active role or shy away from things. Finding out how your partner’s family treated money could lead to greater understanding between you.

What was your first job and how did you spend your first paycheck?

Who doesn’t like sharing childhood stories with their spouse? But one tale you might gloss over is the story of your first job.

Most teens and young adults relish the first time they’re allowed to join the workforce. Whether your first gig was at a movie theater or a McDonald’s, sharing that story will remind you of a time you were excited to go to work and earn a paycheck.

Don’t forget to share what you bought with your first earned dollar. Did you save for your first car? Were you trying to go on a fun spring break trip with your friends? Talk about how long it took you to save up that money and how excited you were to buy something.

What is your favorite purchase you’ve ever made and why?

How we spend money reveals what our values are. For example, there’s a difference between someone who buys Starbucks every day and someone who visits a local coffee shop that roasts its own beans. The first person values the convenience, while the latter appreciates a finely made cup of coffee.

Learning what your partner values will help in future budget discussions and help you understand why they’re opposed to giving up a daily latte. If you remember that they told you that their favorite purchase was a Corvette, then you won’t ask them to drive a beater for a few years to save money.

What is the best money advice you’ve ever received?

Any piece of advice, no matter its impact, should be shared with your spouse. It might be knowledge they haven’t heard before or it could be something they already know, but didn’t fully comprehend.

For example, maybe you learned early on that hoarding your money in a savings account was better than spending it on clothes and movie tickets. Your partner might be impressed that you started saving at a young age and realize that continuing that habit is important to you.

What would you say is your biggest money mistake?

Unless your partner is a Dave Ramsey fanatic, they’re likely to have a few money blunders in their past. Ask them to share them, what they learned from the experience and how they approach finances now.

No matter what he or she says, be compassionate. Sharing mistakes is humbling for anyone, and if you judge or berate them, they’ll know not to open up next time.

What is the smartest thing you’ve ever done with your money?

Even a money maven could learn something from their partner. Sharing your biggest money wins could renew your confidence in your partner, teach you something and create a sense of togetherness.

Plus, what your partner shares could inspire you. Maybe they bought an old car and drove it for years, learning how to fix basic problems. Now you know that you have a handyman living at home so there’s no need to buy a brand new sedan. Or perhaps they started their Roth IRA at 18 and have been slowing saving away each year.

Should My Partner and I Buy a Home Before We Marry?

Should My Partner and I Buy a Home Before We Marry?

First comes love, then comes the mortgage, then comes the wedding? Although it may seem unconventional for a couple to purchase a home together before making the trek down the aisle, according to a 2013 study by Coldwell Banker, approximately 25% of couples between the ages of 18 and 34, and 14% of those aged 45 and older purchased a house together before they were married.

Here’s how to be unconventional, but also protect yourselves:

Address the Legalities

When going into any type of transaction with a partner, it’s imperative you have open and honest conversations about roles and responsibilities.

  • How much will you each contribute to  the down payment?
  • How much of the mortgage payment will you each be responsible for?
  • Who will handle the excess fees, such as such as property taxes, homeowner’s insurance, and any homeowners association fees?
  • Who’s responsible for property maintenance and upkeep?
  • How will you fund or handle home upgrades?

Delegate roles and responsibilities so that you’re each comfortable with what the other is contributing and consider documenting these in a cohabitation agreement, which is a legal document that will protect each of you should the relationship turn sour. Also, draw up a property agreement, which lists the items (furniture, appliances) each of you bring to the home and designates how jointly purchased items should be divided, if ever necessary.

Aside from documenting the financials, consult with an attorney on the correct titling of your property. There are two options:

1.     Joint tenancy with rights of survivorship gives you each a 50% ownership in the home. Should either of you pass away, the deceased’s interest will automatically transfer to the surviving owner.

2.     Joint tenants in common lets you to designate the percentage each owner is responsible for (i.e., 70% / 30%). In addition, the deceased’s interest wouldn’t automatically transfer to the surviving owner. Should either of you pass away, the percentage owned by the deceased will be distributed according to the deceased’s will or based on the probate process in your state should no will exist.

Have Open and Honest Conversations

If you’re talking about purchasing a home together, you should’ve already shared what each other’s income levels look like, existing savings account totals, debt load, and current credit score. If possible, peek at each other’s credit reports so you know what you’re each getting into. Also, share how much of your existing assets you’re willing to commit toward a home purchase.

Know that when you purchase a home, you’ll likely be approved for a mortgage amount and interest rate based on both incomes and credit histories. Should the relationship not work out, you’ll need to agree to one of several scenarios:

  • Maintaining joint ownership.
  • Selling the property.
  • Trying to refinance into only one of your names, which may be tough with only one income, depending on the size of your mortgage.

In addition to divulging all of your financial numbers, be sure to come clean to each other about any financial habits that you have.

Naturally, you’re planning for a positive future together, but how should you handle things if the relationship doesn’t work out? By having an open and honest dialogue early on, you’ll set the stage for a more stress-free purchase process.

This post was written in partnership with The National Association of Realtors. I have been compensated, but the thoughts and ideas are my own. For additional home finance tips, check out HouseLogic.com.