Entering a new chapter in your relationship? Here are 5 myths on managing finances as a couple

It’s time. You’ve been together with your partner long enough and feel that tipping your toes into managing shared finances is the way to take the next step in your relationship. But are you not sure if you’re doing things the right way? Here are some myths you may have heard about on how to manage finances as a couple and perhaps this discussion will help you and your partner find your way through this new chapter.

1. You should avoid talking about money

Needless to say, the topic of finance is a tension trigger for many couples. To avoid conflict, some think it is best to avoid money conversations for as long as possible. According to a CEO of an online financial planning service, there’s no reason to only wait for financial issues to happen before talking about them. Discussing your history, spending habits, expectations and goals with your partner earlier helps set future financial goals and allows you to review your progress along the way. Having regular financial conversations also helps support a healthy relationship.

2. You should have joint accounts

Having a joint account speaks clearly about how transparent partners are with each other, while having separate ones may seem like there’s no trust between partners or respect for the relationship. However, owning a joint account isn’t a rule to follow and you shouldn’t feel pressured to have one. Some couples have separate or joint accounts, or even both.

The intention of setting up an account has to be clear – is a joint one to pay for daily necessities? Meals out together? To split bills equally? And are separate accounts for convenience? Or to maintain that sense of financial independence?

If there’s an underlying fear behind wanting to set up a certain account, the issue can’t be solved that way. For instance, if you want a joint account because you’re worried your partner might overspend and it helps you to watch their spending, the perceived control may not necessarily be a solution. There needs to be trust and honest communication on spending habits and setting a financial plan could help. Discuss with your partner what works best for both of you and decide by weighing the pros and cons. Having joint or separate accounts works, as long as they work for your financial plan.

3. Couples should have the same financial personality

Every individual manages their finances the way they know how to, and it’s not realistic to manage your individual finances just like your partner. Just like having different personality types, there are also different money personalities. There are the big spenders, savers, shoppers, debtors and investors, with characteristics overlapping in some individuals. Knowing which type you and your partner are and understanding what each other’s money habits are will help sort out differences and put in place specific steps to tackle bad financial habits, if any.

4. The person earning more has a bigger say in your finances

There is often the scenario of a power play, where the person earning more will have more say because they provide more financial support to the relationship. This may make sense; however, a relationship isn’t the same as being shareholders in a company. You and your partner form a team to make the relationship work and any concerns should be raised at the table. If there are huge salary gaps, discuss what proportion of your salaries will go into bills and compromise on what will work for each of you. It is also beneficial for both parties to be aware of account payments and details and bills, even if one is paying significantly more than the other. At the end of the day, it’s a team effort.

5. You don’t need to worry about retirement yet

Retirement may seem like a long way to go, but the less time you allow your money to work for itself, the less returns you’ll receive for your golden years. You may have priorities such as paying off debt, saving up for children or a house but it’s never too early to start planning for your retirement. Think about your goals in retirement and what is a reasonable amount for you to put aside regularly. It’s okay to focus largely on your current finances but having a roadmap for the future with your partner would be an added assurance that your future is being taken care of.

Another way of staying prepared for the future and protecting your finances is to get life insurance. Much effort is put into your finances but in the unfortunate event that you are unable to work for an income or even die, it will help your partner stay afloat and be financially supported. Whichever stage of life you’re at, whether you’re getting married or expanding your family, have the added assurance to pursue your life goals. For term life insurance like FWD Term Life Plus, get to enjoy up to a million-dollar life insurance cover from as low as S$1 a day¹, with no medical examination required². The plan also offers spouse coverage of up to S$250,000 for 1 year³.

Choose to plan ahead and have the option to pick from a fixed or renewable term. Head to insurance promotions to check out ongoing exclusive insurance offers, and easily get a quote and be covered within minutes!