Money is one of the causes of many divorces or relationships ending. The mishandling of personal finances can hinder relationships for a number of reasons.
Financial infidelity
Infidelity is a reason for many divorces, but financial infidelity can be another reason. Financial infidelity is when one partner of a relationship spends money without the other person knowing. It may seem harmless, but if the purchases are large or the spending gets out of control it can cause problems within the relationship. In many cases, the other person doesn’t know about it until the situation is dire and then it may be too late to salvage the relationship. They may feel that if their partner is hiding financial matters from them, there are secrets they are hiding about other aspects of their lives.
Bad Credit
It is important to discuss your financial matters once you get into a serious relationship or start discussing marriage. It may be difficult to broach the subject but it is very important to know how your partner’s financial situation may affect your future plans. Do they have considerable debt? What is their credit score and credit history? The state of their credit score is important if you are planning on purchasing a home, vehicle and other purchases. The credit score is a major factor in determining the interest rate you will be eligible for. If one or both of you have low credit scores you will likely pay higher interest rates, in turn paying more for the loans.
Added Stress
If you are having fights about money, then it can add additional stress to both parties as well as any children involved. If you find yourself in financial difficulties, it is very important to sit down as a couple to make a plan of how to get out of debt and stay out of debt. You will not make much progress if one is trying to pay the bills and the other is out spending more money than you can afford to spend.
That is why it is important to have regular budget meetings together, either weekly or monthly to examine expenses coming up so you can a joint decision of how to handle expenses that may come up.
It is also important to make sure you are both on the same page about your future plans, do you want children and if so how many, will one parent stay home with them and other situations that need to be decided. There are considerable costs related to having children, and if one parent decides to stay home, then you need to figure out how to live on one income.
Besides damaging your credit, mishandling of personal finance matters can also hinder relationships.