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Four simple ways to plan finances with your partner

11y By Bongiwe Tshiqi

Finances can be a source of trouble for a relationship. We give you advice on how to have an honest and open discussion about money with your partner.

By: Boitumelo Mmakou

Michelle DuBois, legal Marketing Specialist at Liberty Retail says priorities can change over time so it is important to take the time to discuss your goals and expectations at least once a year or when considering a significant financial milestone together, such as buying property or a car. Make sure that you both understand the implications on your financial plan together and as a couple.

Michelle DuBois, legal marketing specialist at Liberty Retail shares tips from on ways to prevent money getting in the way of your relationship:

1.Appetite for debt

One partner may be happy to make the minimum repayment on debt, while the other may believe in living debt-free. This can cause significant friction in a relationship especially if one partner continuously spends on their credit card. So, make sure you communicate how you will work through your debt together.

2. Budgeting as a couple

It is important that you create a joint household budget as well as your own personal budget. For the household budget, you need to discuss which expenses each person is responsible for dividing your joint expenses.

3. Joint bank account

Although it is important for each of you to have their bank account to ensure financial independence and build up a credit record, you could have a shared account. Michelle says this could be an account in the name of one partner and the other partner has signing power and is authorised to use the account as their own. However, a disadvantage of this is that if the principle account holder should die, the account would be frozen.

4. Life after death

Discuss succession planning together so that you have peace of mind knowing what the financial position would be if something happened to your partner. Each partner should create a “book of life”. This is a file of everything their loved ones would need in the case of an emergency. The book of life should contain the following information:

  1. ID number
  2. Copy of medical aid details
  3. Passport details
  4. Tax details
  5. Financial adviser contact details
  6. Policy documents
  7. Bank details and anything else that could be relevant

 

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