Relationships, as most people realize, can have their ups and downs. Yet it often seems that the “downs” increase with financial uncertainty: money or rather the lack thereof can be a major point of contention in even the most concrete of relationships.
The Attractiveness of Financial Security
Marrying for money has long been looked down on by society. However, marrying someone for their bank account is a world apart from being attracted to someone because of their financial security. A person who has financial security demonstrates that they’re responsible, hard-working, and cognizant of the future. These are all qualities that are attractive to the average person. Having financial security also removes a stressor and a major one at that from your marriage or partnership, while allowing qualifications for must-haves: a home, a car, a nest egg for a rainy day.
Merging Your Finances Together
Even if two people who are both financially responsible marry, there are some things that they must be aware of prior to merging their finances together as one. It’s important to keep in mind that after you’ve married, your portfolios do as well. This means that anytime you apply for a loan, try to get a credit card, or visit the bank, the income, credit score, investments, and financial habits of your spouse will also be considered. This can either hurt you or help you.
Advantages to Shared Finances
Some couples absolutely refuse to share money, opting instead to have separate bank accounts instead. While this may work for them, there are benefits to shared accounts. For example, separate pools of money can be highly difficult to manage when children are involved. They can also present difficulties when it comes to paying joint expenses, such as the mortgage, groceries, home needs, and utilities.
Another benefit to merging finances is that it limits a person’s ability to splurge, at least if there’s an agreement between the married couple that states big expenses must be discussed beforehand. A joint account can also make people more likely to stick to a budget and manage their money efficiently. If this becomes overwhelming, a wealth management company can always help make things easier.
The final benefit to sharing your money at least compared to those who don’t share it may be a happier marriage. According to the NY Post, a 2013 study found that people who pooled 80 percent of their salaries were happier than those who pooled 70 percent. People who pooled 95 to 100 percent were the most happiest. The reasons for this may vary. Sometimes, it’s an issue of trust with those who share money believing their spouse trusts and respects them more than those who don’t. Other times it’s simply about having nothing to hide.
The biggest reason appears to be that those who don’t share money tend to argue about it more. They not only argue about what each individual is doing with their money, but they also fight about wage and salary inequality and accusations from one to the other about not carrying their weight. This doesn’t mean that every married person in the world should share money, but pooling it, at least for some people, may give you one less thing to worry about.