According to a 2021 study from Fidelity Investments, one in five couples identify money as their greatest relationship challenge, and 44% of partners say that they argue at least occasionally about money. My guest today, Financial Wellness Leader and speaker Michael de Haan, has lived on the wrong side of these stats while experiencing the breakdown of a 22 year marriage. Today on CFO at Home, Vince discusses that experience with Michael, and the lessons learned from it that he’s applying in both his current marriage, and his work.
Key Takeaways
- Lack on communication and a common sense of unity/teamwork in the area of money played a significant role in the failure of Michael’s first marriage
- Michael’s keys to a healthier money relationship in his new relationship
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- Budgeting (Intentional Spending Plan)
- An agreed upon approach to take managing (and ultimately eliminating) debt
- When your partner shares their money story, be mindful of any tendency to be judgemental
- Fidelity Investments 2021 Couples and Money Study
- For Financial Success, Make Money a Team Sport
- 54% of couples say they make day-to-day financial decisions jointly.
- 57% of couples say they make retirement and longer-term investing/ planning decisions jointly.
- Those who make money decisions jointly are:
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- More likely to say they communicate very or exceptionally well with their partner.
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- Jointly 75% Independently 70%
- More likely to feel confident in their partner’s ability to assume full responsibility of planning for retirement and other long-term goals.
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- Jointly 84% Independently 54%
- More likely to agree on where they want to live in retirement.
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- Jointly 86% Independently 80%
- Many Couples Still Have One Partner Take the Financial Lead
- Many Couples Still Have One Partner Take the Financial Lead
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- 31% of men say they are the primary decision maker for day-to-day finances.
- 31% of men say they are the primary decision maker for longer term retirement and investment planning.
- 26% of women say they are the primary decision maker for day-to-day finances.
- 19% of women say they are the primary decision maker for longer term retirement and investment planning.
- 22% of women still report having little to no involvement in retirement or longer term planning.
- Couples Who Communicate Well Are More Likely To
- Expect to live a comfortable lifestyle in retirement (79% vs. 35%)
- Rate their household's financial health as excellent or very good (73% vs. 42%)
- Discuss finances together at least monthly (64% vs. 25%)
- Say that money is not their greatest relationship challenge (84% vs. 59%)
- Financial stress can be a contributor to anxiety and depression
Resources, Ways to contact
Contact the Host - vince@thecfoathome.com
