For love...and money: Financial chemistry helps create winning formula for long-term romantic relationships
S
uccessful long-term commitments rely on strong financial compatibility as well as romantic chemistry, according to the RBC 2020 Relationships and Money Insights Poll.
The majority of Canadians with partners (85%) felt that having similar financial goals and habits was a prerequisite to their healthy, long-term relationships. Four-in-five (80%) believed it was important to speak with a prospective partner about finances before getting involved in a serious relationship.
In addition, the vast majority (91%) underlined the importance of prospective partners thinking along the same lines when it comes to spending and saving money, with almost two-thirds (62%) saying that the state of a potential partner's finances could be a deal-breaker.
Setting clear financial boundaries was also a top priority (81%), with over two-thirds (69%) admitting that they would not combine their finances with their partner's unless they knew that partner was financially stable.
When you're committing to a relationship, you're inviting that special someone into your life, along with their finances, says Sandra Abdool, Regional Financial Planning Consultant, RBC Financial Planning. That's a lot of sharing, and as a couple, it's important to set clear financial boundaries to make sure you're on the same page when it comes to spending, saving and managing your money.
When it comes to fraternizing with your partner about your finances, it's not just about what you say, but how often you say it, too. More than three-quarters (77%) of Canadians in relationships reported they speak with their partners about finances at least monthly, to create shared budgets (45%), come up with financial goals (41%) and save together (37%).
While chemistry certainly counts, today's couples want financial chemistry and compatibility, too, adds Abdool. By having frequent and honest conversations about your finances, you're well on your way to building a sound financial and long lasting relationship together. Then go a step further - take time to do a reality check with a financial planner who can offer an outside perspective on financial compatibility.
Here are tips from RBC to help Canadian couples stay on the same page and reach their financial and life goals together
Find the budget that's right for you Discussing finances and setting clear financial goals and boundaries are important for any relationship. By coming up with a shared, realistic budget, Canadians can ensure they are on track with their partners, while leaving little room for surprises down the road. NOMI Budgets takes the thinking — and the manual calculation — out of setting up a budget for RBC clients. It focuses on five key categories and keeps the client on track by sending regular updates through the RBC Mobile app's budget tracker.
Say I do to a shared financial plan Creating a detailed financial plan and sharing this with your partner can help you work together to reach shared savings goals. Here's where RBC Financial Planning can provide advice to help ensure money is there for you and your partner at various stages throughout your life together - for example, buying a car, getting a mortgage, raising a family and planning for retirement.
Invest for the future Having a 20-minute conversation with a financial planner or advisor - in a bank branch or from the convenience of your home or office - can help you break the ice with your partner and begin talking about your shared financial goals. RBC's MyAdvisor is an online financial advice service that connects you wherever you are with RBC financial planners and advisors who can give you guidance about how to build your financial future.
✔️ For love...and money: Financial chemistry helps create winning formula for long-term romantic relationships
💕 Found this article helpful? Spread the word and support us!