Capital One Survey Examines Money Management Practices of Couples
Holiday shopping season presents opportune time for couples to focus on financial goals and habits
“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
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
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
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,
About Capital One
Source: Capital One
Capital One
Shelley Solheim, 917-589-6203
shelley.solheim@capitalone.com