COVID-19 has impacted our lives in myriad ways. Work, relationships and finances — the very core aspects of day-to-day life — have been upended by widespread job loss and stay-at-home orders. Couples are spending more time together. Singles, now socially distancing, are dating less.
Due to the global pandemic, relationships have shifted: Couples and singles alike are focusing increasingly on financial stability and transparency.
In a recent Personal Capital survey conducted by The Harris Poll*, nearly 2 in 3 Americans (61%) told us that the COVID-19 pandemic has made financial stability in a partner more important to them.
Financial stress affects couples in different ways. According to our survey, however, men feel the impact of financial stress in a relationship slightly more than women. They have also noticed that they are talking more about money with their partner, and — either in conversation or in private — they’re more likely to have contemplated a prenup. However, they don’t value financial stability as much as women do.
For many couples, we find the conversation that is needed is more about being upfront and transparent about finances in general, such as their personal situation, goals and views around money. Money isn’t exactly the most romantic topic — especially when you and your partner broach it out of necessity or due to a conflict. In these instances, we recommend going into the conversation with “an open mind, ready to listen and avoid judgement.”
As a third party and fiduciary advisor, we can help facilitate a big-picture money discussion, laying out the pros and cons of various scenarios and nudging both sides to be honest about your current financial situation and future money expectations.
We recently published a podcast with psychotherapist David Pearl about tips and ways to have those uncomfortable conversations with your significant other. In all, Personal finance is just that — personal. When discussing it with a partner, it can feel vulnerable, and you can feel anxious or uneasy. However, don’t let those feelings distract you from having a productive and transparent conversation. Consider discussing with a financial advisor to help spark those conversations and find a happy medium when it comes to your finances. If you and your partner would like to discuss with us, please book a complimentary 30-minute consultation here.