Let’s face it, money conversations are difficult. They’re even more difficult when you need to have them with your husband or partner. But these conversations are essential and are important in helping you understand not only how your partner thinks about money but also serves as a guideline to determine where you need to cut down and perhaps save or invest a little more as a couple.
To make any relationship or marriage work, both parties need to be open and privy to where they stand financially and identify financial mechanisms that allow them to best manage their money.
FNB experts suggest key questions that are pertinent to the money management conversation:
1. Discuss your money goals upfront.
Many people shy away from this question. In reality, and as creatures of habit, we sometimes tend to overspend on wants, instead of saving for the long-term. Ester Ochse, Head of Product at FNB Integrated Advice explains that “there are people that actively save their money and then there are those that spend all their money the moment it comes in. What’s important to highlight here is your money goals upfront, so that each person understands and help each other manage money in their relationship.”
2. Do you have emergency savings?
Ilse Smuts, Product Growth Head, FNB Cash Investments highlights that, “Emergency funds are necessary. We need to ensure that we have funds or cash reserves for those unplanned or financial emergencies like home repairs, medical costs not covered by medical aid or even those unexpected school expenses. The general rule of thumb is to put away at least three months’ worth of your income. This is dependent on the size of your emergency fund and will vary depending on your lifestyle, monthly expenses, income and dependents.”
3. Do you have any investments?
Whether short or long-term investments, give your spouse or partner an overview of your investments. This includes investments like Unit Trusts, Tax Free Savings Accounts (TFSA) or even Offshore Investments. Carla de Waal, Head of Multi-Management and manager selection at FNB Wealth and Investments says, “Make note of your investments in one place and share a copy with your partner. Lack of transparency could lead to conflict and emotional distress. Budget together, save and invest together, as a family. Help your children from early on differentiate between ‘needs’ and ‘wants’, and the power of delayed gratification, to allow time to grow your investments.”
4. Do you have a Will?
A well drafted Will will help your family stay in good stead and will give them peace of mind. Aneesa Razack, CEO of FNB Fiduciary explains, “Like your finances, your Will is a detailed plan of how you will leave your accumulated assets and belongings once you are gone. Your Will is an important obligation as it not only helps preserve your family’s generational wealth and leaves a lasting legacy for your family, but also ensures that your minor children are well protected. However as great as it sounds, you will need to ensure that you speak to your family about managing money so that your family will benefit from this inherited wealth long after you are gone.”
5. What insurance do you have?
Insurance should provide you with the necessary security and be seen as a safety net for the future. Hlengekile Jita, Product manager for FNB Insure says, “Whether short or long-term insurance, ensure that you have your own and your family’s best interests at heart. Try to consolidate and find the most affordable insurance options to suit your needs.”
A lot can be said about managing your finances. However, it’s important that money conversations be handled maturely and together.
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