An individual’s past significantly affects and continues to shapes, his financial conditions in present and future. Behaviors, attitudes, beliefs and values related to finances limit couples to talk about it and take rational decisions.
A discussion on finances is not just a talk about cents and dollar; it is more detailed disclosure of values and beliefs, expressed through the spending behavior. Therefore, most of the couples hesitate to discuss the finance before marriage.
There are virtually no hopes, dreams, goals or decisions that are not in some way connected to finances. So, it is extremely important to discuss finance with your potential would be. They need to discuss it under various parameters.
The first thing they need to consider is earnings. Couples should discuss in advance whether or not they both intend to work after marriage. They should reveal for how long each one of them want a career. The future financial planning is very much dependent on this decision.
The next point of discussion should be spending. They should decide what their priorities are. Here, both should try to understand their partner’s spending behavior. They can have a different perspective on spending and saving. Don’t forget there are misers, as well as spendthrifts in an economy. Understanding the spending behavior of each other helps make better decisions related to savings and investments.
Couples should also share their responsibilities when it comes to finances. Both should openly discuss the amount of money they will put in for monthly expenses. It will help them decide how much savings each one want to make in the future. Talk about the future goals, hence it is easy to save money to fulfill the dreams.
Finally, couples should discuss about how to make their finance grow. Both of them may be good at saving, but it is possible that they may have different risk taking appetite and thus differ on matter of investment.