FINANCIAL COMPATIBILITY FOR COUPLES SHE SAVES/HE SPENDS

WRITER: JAN BURCH

Do similar financial outlooks mean a couple is compatible while differing financial styles may spell doom for happily ever after? With many factors contributing to the success of a marriage, the answer is not as simple as it seems. If you’re in a relationship that’s becoming serious, you and your partner should explore your financial compatibility before the question is popped, and definitely before you say “I do.”

Assess your partner’s behavior, and your own, in money-related situations. How does he tip in a restaurant— generously, sparingly, or just right? Does she stick to a monthly budget, or does she blow her paycheck on shoes while charging groceries to her credit card?

Refine your observations with a financial compatibility quiz, which you can find online. Make it a game: each person answers the questions for themselves and their partner, followed by a heart-toheart conversation when you compare your answers. Use this information to decide whether you’re a spender or saver. Then think about how your relationship may fare over time:

Two Spenders

Two spenders might seem to have a lot in common, but individual spending habits may cause ongoing conflict. He criticizes her interest in home decorating when she buys new items to redo the rooms, while she’s taken aback at his spending on car accessories and electronic gadgets. If their income is high enough, they might write off the conflict as simple lovers’ spats—until the unchecked spending brings financial ruin. However, it can work if partners communicate well and commit to developing good financial habits— both individually and as a couple.

Saver and Spender

One likes to save, while the other enjoys spending. This could be the best financial strategy of all time or a source of endless conflict within the marriage. If you keep it positive, the spender can learn about budgeting, record keeping, and goal setting from the saver, while the saver learns to view wisely chosen expenditures as investments. As long as the partners maintain good communication and regularly review finances, this oddcouple combination can have solid staying power.

Two Savers

With two savers in the family, you might think it’s the ideal situation because both partners should have some basic agreement on the value of savings. But a family’s financial health involves much more. There are daily details such as bill paying and record keeping to be worked out, along with long-term goals such as travel, a new home, retirement, or children’s education. It’s fine to save, but saving should serve family’s goals.

In the worst case scenario, two savers might penny-pinch to the point of hoarding. For example, putting off needed home repairs if it means dipping into savings. Delaying repairs can lead to more serious problems that are more expensive to fix, reducing the home’s value over time.

Going Forward

By now you and your intended should understand your respective financial types and how they work together, for better or worse. Next, discuss details: how expenses are shared, who pays the bills and balances the checkbook, goals for short-term and long-term savings, and so on. If you create a plan that suits both of you, your financial compatibility, or lack thereof, doesn’t have to be a deal-breaker. As with all aspects of married life, good communication is the key to harmony.