Frank discussions about finances are the key to a healthy relationship
Money isn’t the root of all arguments in relationships, but it comes close. David Roberts, manager for mediation services at Relationships Australia, says money pressures are one of the top four reasons that couples separate. US research has found it is the No. 1 issue that married couples argue about and the second most common cause of divorce after infidelity.
Debt is a common source of arguments, along with secret spending and budgetary pressures such as paying bills.
Kirsty Lamont, director of the comparison site Mozo, says research by her company found around a third of people in relationships fight about money at least once a month. “Some of the things they get most upset about are their partner’s inability to manage a budget, wasting money on things like smoking and gambling, and lying about money,” she says.
A recent Westpac survey on finance and separation found that almost 70% of separated couples who rarely spoke about their finances were not in a financially healthy position. It says more than a third of Australians who live in a committed relationship are not financially healthy as a couple.
Income inequality, where one partner earns significantly more than the other, can exacerbate problems by introducing a power imbalance into the relationship. This can even degenerate into financial “abuse” where the partner who wields financial power uses it to control their partner.
But the news isn’t all bad. Being honest and transparent about money has been shown to boost both your love life and wallet.
BALANCE OF POWER
OK, so money isn’t the first thing we talk about in the euphoria of a new relationship. But Lamont says she was surprised at its importance in Mozo’s recent research.
Esta historia es de la edición August 2019 de Money Magazine Australia.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición August 2019 de Money Magazine Australia.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.