How To Talk To Your Partner About Finances

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In This Article

If you’re hoping to have a romantic evening with your partner, launching into a conversation about your finances probably isn’t the best way to go. But when it is time to talk numbers, there’s a way to talk to your partner about finances without making you or your partner lose your cool.

1. Start with your goals

It’s helpful to be purposeful when you talk to your partner about finances. That’s why it’s great to start with an endpoint in mind and work your way backward. As much as you can, focus on major long-term goals (think about big-ticket items like houses and children). But it’s okay to start with short-term goals too. For example, perhaps you want to take a vacation in six months. Or maybe you’re getting ready to upgrade that bed you’ve had since university (we see that sheepish grin).

Whether you’re focusing on 6 months or 6 years from now, imagine your future life and fill in as many details as you can. Where are you and your partner living? What do your salaries look like? When are you planning to buy a house or have kids? Do you have debts hanging over your head?

Remember that neither one of you is right or wrong here. But you both need to be honest so you can identify a financial game plan you agree on.

2. Figure out monthly spending

You may avoid looking at your monthly bank and credit card statements as much as possible. But even though it can be a painful exercise, we can’t stress enough how important it is to know exactly how much you’re spending each month. One of the big lessons we’ve learned while building PolicyMe is that most people underestimate their monthly expenses. And when talking about finances with your significant other, there’s nothing worse than having the facts wrong (or having alternative facts).

Luckily, with all of the online budgeting tools out there today, calculating your monthly expenses has never been easier (and you don’t even have to deal with paper cuts!). Using Mint or another budget app, you can upload or enter your financial details and easily understand all the money that went into your bank accounts (for example, salaries, returns, and rebates) and everything that went out (such as your rent, groceries, shopping sprees, and restaurant splurges).

You can also have the app calculate the difference between what came into your account and what went out. Known as your net income, this difference represents your savings. It’s the money you have to put towards those goals you identified earlier.

When it comes to monthly expenses, life insurance can sometimes feel like an additional burden for families. However, it's essential to have the right coverage in place to protect your loved ones' financial well-being in case of an unforeseen event. By taking the time to compare life insurance in Canada, you can find a policy that best fits your unique needs and budget. This way, you can invest in reliable protection that gives you peace of mind without adding unnecessary strain to your monthly finances.

Start by discussing financial goals and priorities, and then work through any areas of conflict or differences in opinion. Remember, compromise and flexibility are key. It's also important to consider financial protection options such as life insurance without a medical exam Canada. This type of insurance provides coverage without requiring a medical exam, making it a convenient option for those who may have difficulty obtaining traditional life insurance.

It is also worth noting there is a distinction between male vs female insurance rates in Canada. Thus, it is important to shop the best rates for both partners.

If you want a policy that covers both you and your significant other, we recommend getting a joint life insurance policy. These policies will keep your loved ones financially afloat incase you or your partner passes away, making it much more practical than purchasing two separate policies.

And if your partner has an illness that is covered by critical illness insurance, you may want to figure out how to claim critical illness insurance to secure your financial safety net after your partner passes away.

If you or your partner have parents that don't have life insurance, it's still not too late. Visit PolicyMe to find good life insurance for life insurance for seniors over 65 rates.

3. Create a budget

Are your savings enough to cover the price tag on your goals? If not, it’s time to start a budget. Together with your partner, create a realistic budget based on the future you both want. Remember that marriage is a partnership, not a dictatorship. So be sure to craft your budget using words like “we" and “us" instead of “me" and “you."

4. Understand related financial topics

When blogs and other online resources give you financial tips, they usually stop at the budgeting piece. They tell you to make a budget and stick to it. And if you successfully tackle these two simple steps, they say, you’re all set.

But let’s be honest—if saving money was this easy, payday loan companies wouldn’t be making millions. So what do many online resources leave out? They don’t cover the basics of other important financial topics.

For example, what do you do with all the money you’re saving by sticking to that budget you made? Should you put it in a checking account? We see that as a wasted opportunity.

Instead of letting your savings sit dormant in your bank account, look into retirement savings and investment options. Why not generate some income on that hard-earned cash?

You also want to get yourself comfortable with financial topics. If your high school calculus days still feel too close for comfort, any topic that’s heavy on numbers may seem scary. But don’t be afraid to read up on retirement savings, investing, and insurance. We get that they’re complicated, and we don’t expect you to crack the code in just one day. Instead, make it a goal to learn more about them over time, and talk to your parents, friends, or other people you trust about what they’re doing with their money. A little bit of confusion is worth the benefits of making the most of your savings.

Because life insurance can be complex and overwhelming, we’re working hard to give you trusted content on it all in one place. Read more about what life insurance is and some other key topics you should consider when buying life insurance.

We recommend term life insurance as it provides the most ideal coverage at a fraction of the cost. Visit PolicyMe to find the best term insurance quote. Use our online life insurance calculator to calculate life insurance needs.

5. Finally, make it routine

Want to stop dreading the finances talk? Have it more often. Schedule specific times when you and your partner agree to talk about money. (You can even call them “money dates" if it helps you get in the mood.) This way, you both know exactly when you’re going to sit down and chat dollars and cents instead of waiting for someone to awkwardly bring it up. When you plan to discuss finances in advance, you can come to the table prepared and in a good headspace to talk.

Laura McKay

COO & Co-Founder
About the Author

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