Holiday shopping season presents opportune time for couples to focus
on financial goals and habits
MCLEAN, Va.--(BUSINESS WIRE)--Nov. 23, 2009--
The holiday shopping, entertaining and travel season is nearly upon us,
and for many couples, holiday expenses can trigger financial anxieties.
According to a new survey from Capital One Financial Corporation
(NYSE:COF) examining the financial habits of couples, most (55%) of
those surveyed have not yet discussed a budget with their partner or
spouse for holiday shopping and just over half (51%) report that they
have not set aside money to spend on holiday gifts. While not discussing
budgets or setting aside money for gifts could lead to squabbles, the
majority (78%) of people surveyed say that they generally agree with
their partner on how much to spend on holiday gifts. Of those who do not
agree on holiday spending, a larger number of women admit they would
like to spend more on gifts than their spouse.
“The holidays can be a hectic time, but it’s important that couples
remember to talk to one another about their finances and set financial
goals together during this season to prevent any added stress or
disagreements,” said Shelley Solheim, Director of Financial Education,
Capital One. “Holiday anxiety can take a toll on relationships, but
there are steps couples can take together, such as deciding on a budget
for gifts before going shopping, that will help ease financial tensions
during the holidays and beyond.”
The survey also examined the everyday savings and financial practices of
couples. Experts stress that it is critical for couples to discuss
savings and financial goals regularly, and the vast majority (93%) of
those surveyed believe that their partner or spouse is open to
discussing money issues.
Though most couples report that they are having important conversations
about savings and budgeting, disagreements do arise. One quarter (25%)
of people surveyed say they disagree with their partner about money
monthly or more. Nearly one-third (29%) of respondents also report that
they have argued with their partner about money in the last year. The
survey found that younger people (18-34) are more prone to conflicts
with their partner about money: 36 percent disagree with their partner
about money monthly or more often, while 65 percent of those between
18-24 and 41 percent of those between 25-34 report that they have argued
about money during the last 12 months.
“It's not whether couples disagree about money that makes them happy
together or not,” said Gregory A. Kuhlman, a New York City psychologist
who runs stayhitched.com, a marriage success program, with his wife,
social worker Patricia Kuhlman. “All couples have many important areas
of difference, often including finances. It's how couples manage all
their differences that will determine whether disagreements lead to
trouble. Happier couples work together as a team to handle any financial
tensions in ways that don't spill over to affect the overall emotional
climate of their relationship.”
The survey also found that three-quarters (76%) of those surveyed
believe they share the same philosophy as their partner when it comes to
managing money, such as saving versus spending. However, younger couples
are less likely to believe this is true, with only two-thirds (63%) of
those between 25-34 and less than half (47%) of those between the ages
of 18-24 feeling like they are on the same page as their partner
financially. Where the respondents believed there were differences, many
tend to think they are more of a saver than their spouse, perhaps
reflecting different spending priorities.
“Money issues are seldom just about money,” notes Patricia Kuhlman.
“Financial matters often activate deeper issues in a relationship,
including power and control, dependence and independence and commitment
and trust.”
Capital One offers the following tips to help couples together address
important money management matters, such as budgeting and saving:
-
Figure out what money means to each of you. What experiences in
your lives have brought you to your individual approaches to money?
How does this influence your financial behavior – for instance, make
you more financially expansive or conservative? How does it affect the
way you balance your financial, career and relationship goals? Once
you've come more to terms with your feelings about money, it will be
less difficult to make financial plans and resolve financial problems.
-
Decide who will be in charge of finances. It is important to
discuss who will be responsible for what. Determine who will pay the
bills, how you will pay them and who will keep track of the finances.
Experts suggest involving both parties to some degree, so one person
is not solely in charge and so both parties are aware of household
finances. The main thing is that you both participate in major
decisions and that you're both well informed about your financial
situation.
-
Get organized: Gather all important financially-related
documents in a central location that is equally accessible to both
partners and decide what kind of system you will use to keep things
organized. Will you use personal finance software, and if so which
one? How will you keep receipts? Where will you keep your files and
financial records? How will you organize them? Come up with a system
that you both agree on and can follow, and keep it as simple and
straightforward as possible.
-
Build an emergency fund. You never know when you will need
additional cash, and you should try to build up 3-to-6 months of
living expenses in a readily accessible savings account or money
market account. The survey found that 65 percent of couples report
having the recommended 3-to-6 months emergency savings fund, though
younger couples are less likely to have this much saved. Of those with
less than 3-to-6 months saving, half (51%) say they only have enough
for one month or less.
-
Size up your safety net. Periodically review your health,
disability, life, homeowners, vehicle, and personal liability coverage
to make sure you're both adequately covered.
-
Figure out how forthcoming you will be about purchases. According
to the survey, 16 percent of people don’t check with their partner
before spending money. Experts say couples don’t necessarily have to
agree on or divulge the cost of every purchase, but they should
discuss significant budget factors to maintain trust. Many couples
find it better to leave most personal expenses up to each partner
while setting a dollar threshold to trigger consultation about
particular or cumulative expenditures. Couples who are in financial
difficulty do need to take a close look at all of their individual
expenses, though.
Survey Methodology
The findings reported in this release are from a telephone survey
conducted by the opinion research firm, Braun Research of Princeton, NJ
for Capital One Financial Corporation of McLean, Virginia. Braun
Research completed 806 interviews with US resident adults age 18 and
over who are in a marriage/relationship. All interviews were conducted
by telephone with one household member only selected at random. The
interviews were conducted from November 1st, 2009 thru November 8th,
2009. The margin of error for this survey 3.45 percentage points for
each group at the 95% confidence level. Interviews were monitored at
random. Sampling for this study was conducted using a national
probability replicate sample. All interviews were conducted using a
computer assisted telephone interviewing system. Statistical weights
were designed from the United States Census Bureau statistics.
About Capital One
Capital One Financial Corporation (www.capitalone.com)
is a financial holding company whose subsidiaries, which include Capital
One, N.A. and Capital One Bank (USA), N.A., had $114.5 billion in
deposits and $209.7 billion in total managed assets outstanding as of
September 30, 2009. Headquartered in McLean, Virginia, Capital One
offers a broad spectrum of financial products and services to consumers,
small businesses and commercial clients. Capital One, N.A. has
approximately 1,000 branch locations primarily in New York, New Jersey,
Texas, Louisiana, Maryland, Virginia, and the District of Columbia. A
Fortune 500 company, Capital One trades on the New York Stock Exchange
under the symbol "COF" and is included in the S&P 100 index.
Source: Capital One
Capital One
Shelley Solheim, 917-589-6203
shelley.solheim@capitalone.com
