Financial planning for couples: 5 conversations to have

Most couples talk about holidays, weekend plans and what’s for dinner. Money can be a more difficult conversation, even though it shapes so much of our lives.

Financial planning for couples is about understanding each other’s priorities, reducing uncertainty and building a future you both feel comfortable with. You don’t need to agree on everything, but knowing where you each stand is a good place to start.

Here are five conversations worth making time for:

1. How will we share our finances?

There is no single suitable way to manage money as a couple. Some prefer to keep their finances separate, others combine everything, and many choose a mixture of the two.

The important thing is agreeing an approach that works for both of you. Which costs will you share? Will you contribute equally or in proportion to your incomes? How will you cover unexpected expenses?

Fair doesn’t always mean an equal split, particularly if one person earns less or takes time away from work to care for family.

Your arrangements may need to change as your circumstances do, so revisit them regularly.

2. How do we feel about spending and saving?

You may have different attitudes towards money. One of you might feel more comfortable building up savings, while the other places greater value on enjoying life today.

Those differences can reflect your upbringing and past experiences. Understanding them can help you find common ground and avoid frustration.

Talk about what you each consider reasonable spending, which purchases you’ll discuss beforehand and how much money you’d like to keep for yourselves. Be open about any debts and agree how you’ll manage them.

A shared budget should leave room for everyday enjoyment as well as longer-term goals, whether that means a holiday, home improvements or a financial cushion.

3. What do we want retirement to look like?

Retirement can mean very different things to different people. One of you may want to stop working as soon as possible, while the other would prefer to reduce their hours gradually.

You might picture travelling, spending more time with family or simply having greater freedom over your days.

Discuss when you would each like to retire, how you hope to spend your time and what income you might need. Then consider your pensions, savings and investments together, including any differences in the provision you have built up.

A Continuum adviser can use cash flow modelling to help you explore different scenarios, understand what may be achievable and identify whether you need to adjust your plans.

4. How will we protect each other?

It can be uncomfortable to discuss illness or death, but understanding how you would cope financially is an important part of planning together.

Could you cover the mortgage and household bills if one of you could no longer work? Would either of you face financial difficulties if the other died?

Review any existing insurance, workplace benefits and savings before considering where there may be gaps. Life insurance, critical illness cover and income protection can serve different purposes, and the most appropriate combination will depend on your circumstances.

An adviser can help you understand your options and consider suitable protection within your budget.

5. Do our wills reflect our wishes?

Making or reviewing your wills gives you an opportunity to discuss how you would like your assets to be distributed and who you want to provide for.

It is particularly important to seek advice if you are unmarried, have children from previous relationships or your family circumstances have changed.

A solicitor can help you understand your position and prepare a will that reflects your wishes. Make sure you both know where important documents are kept and who to contact when needed.

Ready to start the conversation?

You don’t have to resolve everything at once. Choose a quiet moment, listen to each other and start with what matters most to you both.

A Continuum adviser can help you bring your priorities together in a financial plan that develops with you, supporting the life you want to build and share.

Contact us today.

This article is intended for general guidance only and is based on the opinion of Continuum it does not constitute financial advice. Individual circumstances vary, and you should consider seeking advice from a regulated financial adviser before making any financial decisions.

The Financial Conduct Authority does not regulate taxation and trust advice or will writing.

The Financial Conduct Authority does not regulate will writing or cashflow modelling.