One of the biggest decisions you may ever make in your life is moving in with your partner. While this can be a very exciting time, it also involves a few daunting hurdles you need to address sooner than later. One of these is none other than your finances.
To prevent misunderstandings and conflicts down the road, here are some important money conversations you need to have before moving in with your partner:
The “Combining Your Finances” Convo
Merging your financial lives can be done in many ways and it is a must to talk about how you plan to do it before moving in together. Aside from the fact that the two of you may have conflicting ideas on how finances should work, you also need to discuss the specifics that work for the two of you despite being on the same page.
The “Money Management” Convo
In most couples, one person will naturally become in charge of money management. However, it is not the case all the time.
Determining in advance who will deal with everything from shopping around to price negotiations, bill payments, and balancing the checkbook will help you designate these chores to the one who got the time or skills to handle them.
Being on the same page when it comes to money management will ensure that you won’t have major arguments or make costly mistakes like unpaid bills.
The “Assets and Liabilities” Convo
While no one loves talking about credit card statements, student loan debt, and retirement account balances, it will be a big mistake not to know both of your financial standings before you move in together.
Couples need to be transparent and honest with each other when it comes to their financial situation. The last thing you want is to discover that your partner is neck-deep in debt right on the day you move in.
The “Major Financial Goals” Convo
At this point, it’s likely that both of you already got some basic idea of your individual goals. However, you also need to regularly talk about these goals and your plans for achieving them. As the saying goes, goals are dreams with deadlines. If you don’t discuss your goals, you will never come up with a plan on how to achieve them.
The “Money Beliefs” Convo
It’s all too easy to just see money as a matter of doing the math. However, this topic is actually a very emotional one. Starting from childhood, people hone their money beliefs, also called money scripts, which can be very tricky to change.
If you and your partner have different money beliefs, you might end up arguing often just because you don’t agree on the purpose and nature of money.
Before moving in with your partner, always take time some time to discuss your earliest memories about money. This kind of conversation won’t just let you understand how both of you shaped your present financial views. At the same time, this will bring you closer because you also get to discover your emotional development as a child.