In today’s conditions, we are all talking about money. Especially after the increase in the exchange rate after the elections and the increase in the minimum wage in July, almost everything went up again. With the additional taxes on top, the budget of the married or those who are preparing for marriage began to be a little more difficult.
One of the most talked about topics among couples is money. This process, which starts with holding a wedding venue today, extends to allocating a budget for private schools where children are wanted to be sent in the following years.
So how much do you raise the flag of anxiety when your spouse starts spending? Some couples set spending limits on each other. Thus, they buy the product they want, but when they hit the spending limit, they stop their purchases for that month.
Married people can save more money
Financial matters are not always easy to talk about in marriage. However, couples who have agreed on certain issues in advance can move forward to a joint financial future. According to a study by the US Federal Reserve (Fed); Married couples can save up to four times more wealth than unmarried couples.
According to Megan McCoy, Associate Professor of personal finance at the University of Kansas, setting spending limits can sometimes strain partners.
50-year-old American citizen and married Anne Sophie Hurst lives in Copenhagen, the capital city of Denmark. 12 years ago in marriage, he and his wife agreed on a spending limit. From joint accounts two cannot afford to spend more than $500. As the years passed and children became involved, this amount increased to $1000.
“I feel comfortable spending $999 because I know I can do it and I’m fine with that,” Hurst says. Hurst explains the division of labor in the home, “We have a division of labor when we take care of the family. He is the CFO, I am the CEO”.
Spending limit may scare some
Finance coach Christine Luken also believes spending limits give people freedom. McCoy, an academic working in the field of finance, states that being able to handle this spending limit issue is an art rather than a science. McCoy, “One partner may be more worried about money, while the other may feel comfortable knowing they have a limit.” he says.
Another issue that needs to be decided on budget management between couples is opening a joint account. One of the issues that can be challenging here is who earns how much money. If one of the couples makes up 70 percent of the household income, the joint account can be dismissed.
In marriages, the debts of one of the couples before marriage can also create a burden on the family budget. Bank of America thinks that the other partner should be flexible in this regard. According to another investment advice given by the bank to couples, 10 percent of the common money entering the house should be set aside. Another recommendation from the bank is that couples go on a date at least once a month just to talk finances.
end of the road retirement
According to a study by Kansas State University in the USA, 40 percent of couples divorce for financial reasons. A married person, on the other hand, borrows 120 percent more than a single person.
Some financial advisors list the financial priorities of people after marriage as follows. Buying a house, living debt-free, having children and advancing in your career. A couple who can do all of this is thought to have achieved the ‘final goal’. At the end of the road, there is a retirement that can be considered peaceful.
Professor Cassie Moglier Holmes, who works on double budget at UCLA, one of the famous universities of the USA, states that having a common budget strengthens the feeling of ‘us’. “Finance for individuals; Take charge of your costs” According to Paco de Leon, the author of the book, Paco de Leon, if couples talk about each purchase, their relationship may suffer, and everyone should be able to keep enough money for themselves according to their budget so that they can feel free.
Sources: The Wall Street Journal, The Atlantic, Moneygeek
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