For a lot of people, money is a taboo subject and one that can cause stress and anxiety. Traditionally, it has been seen as rude to discuss wages, personal finances or debt struggles.

When you are in a relationship with someone you love, finances should become a shared topic rather than an individual one. Here are some tips on how to manage your money as a couple to create financial cohesion and be smart with your finances.

Open financial communication

Any relationship will thrive with open and honest conversation. Talking about money can feel daunting at first, but with practice, it’ll feel as easy as any other topic.

If you are in a fairly new relationship it is important to know your partner’s attitudes to money as well as any financial goals such as buying a house or starting to save for a wedding. This is important to avoid any disagreements further into the partnership. If your attitudes do not align, you may want to try and find some compromise about savings, bills or bank accounts.

Joint vs. separate accounts

Many couples struggle to know whether it is better to get a joint account or to continue with separate accounts. In reality, the best option depends on your circumstances.

For couples who are living together, a joint account may be a good idea. You can both contribute to the pot which creates a sense of teamwork and unity. By having a shared fund, you could agree that certain bills come out of it, ensuring they get paid and avoiding one person having to shoulder the responsibility.

Shared accounts do have their benefits too. Having your own money helps you to feel independent as well as in control of your spending. This can be a great way to protect your money if your partner struggles with good financial habits.

The two types of accounts can work in conjunction with each other. You may want to assign bills individually but then have a savings account that is used for a holiday or house deposit.

Budgeting together

Whether you are saving for something specific or just want to get your finances in order, creating a joint budget is a good place to start.

Sit down and combine both of your incomings and outgoings. By doing this you may be able to identify areas to cut back on such as two separate Netflix subscriptions. Small changes like this will add up and you can put that money straight into savings.

If you have any debts you will need to tackle them and get your credit score back on track, especially if the aim is to buy a house together. You may be able to use your newly found savings to make some payments. A loan is another option to help you.

It may seem counterintuitive to take out a loan for debts, but with a debt consolidation loan, you will end up making one monthly repayment to cover the whole amount rather than multiple to different companies. This allows you to manage your budget a lot more easily.

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